This is what cause the Market to rally today.
Headline PCE (Personal Consumption Expenditures PCEs) rose just 0.2%, a sharp reduction from March’s 0.9% increase. PCE which could also be linked to core CPI (e.g food,energy) is the method preferred by the Federal Reserve to measure inflation.
Goldman says signs that inflation is peaking could be positive for stocks
Published Fri, May 27 2022
This is what cause the stock mark to tank today, selling accelerated in the last hour of trading.
The impact of ECB
“If the ECB are even considering an outsized rate hike, I think that sort of says quite a lot about how concerned central banks are and should be about levels of inflation,” Fiona Cincotta, senior market analyst at City Index. “Central banks are showing a willingness to act aggressively to get inflation back under control, and that is going to make the growth environment much more challenging.”
It might be also in anticipation of the US CPI release tomorrow. If it is higher than 8.3% (or worse 6.5%) the stock market will further tank again tomorrow.
As of 4 p.m. New York time,
The S&P 500 fell 2.4% the biggest one-day drop in three weeks.
The Nasdaq 100 fell 2.7%
The Dow Jones Industrial Average fell 1.9%
The MSCI World index fell 2.1%
Apple Inc., Meta Platforms Inc. and Amazon.com Inc. down more than 3.0%.
Also, normally Friday is not a good day for the stock marker as the traders especially with leverage tend to dump their stock to avoid weekend fees.
Do you actually believe what you are writing?
I am always in for a laugh when I see SA or any news outlet which creates articles like X is up because of Y, or Z is down because of A.
Do people really believe this? 