Stock-market investors can be forgiven for feeling a little dizzy after a day that saw stocks plunge in reaction to another round of hotter-than-expected inflation data only to surge higher and extend gains into the closing bell.
What gives — are investors suddenly OK with inflation? Not likely. But market experts cited a number of factors that set the stage for a bounce. More germane, on a percentage basis, the 5.16% swing between the Dow’s intraday high and low was the largest spread since April 6, 2020. The last time the Dow gained at least 3% through the close on a day when it was down as much as 1.88% was on Aug. 9, 2011.
That may have left the market open to some short covering after the initial kneejerk reaction, analysts said.
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