We issue this week’s Insight somewhat early, given the Thanksgiving holiday, allowing all to hopefully relax and recall those things for which we’re thankful.
U.S. equities were basically flat since our last Insight.
Stocks Surge on Lower Inflation
Equities surged last Thursday when the Consumer Price Index (CPI) came in lower than expected. The S&P 500 jumped 5.55% on the day, the largest single-day gain since March 2020.
Consumer Focused Data Week
With consumers representing almost 70% of the gross domestic product (GDP) in the U.S., this week’s economic news gave us a picture of how they are doing.
The Fed Fails to Pivot, Sparking Reversal in Equities
The S&P 500 ended the week down 1.8% thanks to a 3.6% drop in the last 90 minutes of trading as Federal Open Market Committee (FOMC) Chair Jerome Powell extinguished hopes of a bullish Fed pivot.
Equities Shrug Off Bad News as Rally Approaches 10% from October Low
The equity rally continued this week despite bearish headlines. Large cap technology names were very weak and yet the S&P 500 was up 3.7%.
Equities Stage Huge Reversal Off the Lows, But Will it Hold?
Volatility remains elevated as equity indices posted three consecutive 2% change days. The action started last week with a hotter than expected Consumer Price Index (CPI) report that led the S&P 500 to drop more than 2% to start trading on Thursday.
Tidings of Continued Inflation
All eyes this week were focused on inflation, which appears to remain sticky. The U.S. Bureau of Labor Statistics (BLS) reported two key measures of inflation beginning with the Producer Price Index (PPI) for finished goods.