MarketBites: Inflation Data Pumps Up Investors
MARKET PERFORMANCE:
Portfolio Manager Commentary:
U.S. stocks celebrated a sharp uptick yesterday that concluded with a strong rally to close the day. The S&P 500 rose 2.13% to 4,210.24, its highest level since May. Meanwhile, the Dow Jones increased 1.63% and the Nasdaq gained 2.89% to 12,854.80 for its best close since April.
The catalyst for this rally was the consumer inflation report which showed a lower-than-expected 8.5% annual rate. This is a monthly increase of 0.0% and signals that we may have reached peak inflation as long as energy prices continue to come down.
Tech stocks lead the way yesterday. Meta, in particular, has had a great week so far and continued to Wednesday as it rose 5.8%. Another stock with a good day but a bad year is Netflix, which gained more than 6%. Investors seem to be optimistic about Netflix, which has gained 37.65% over the past month. The streaming giant’s gains come in the wake of its first subscriber loss in over two decades.
Yields on U.S. Treasurys fell; which tends to happen when bond prices rise. This is mainly because the bond market is driven by the supply and demand for investment capital. Thus, when there’s more demand for bonds, the treasury will have to raise yields to attract investors.
Chart of the Day:
The world's largest container companies are on course to post profits that will top last year's record by 73%, according to a new forecast.
Invest With Us
Download and invest with us in the Avidus app! Avidus is your "in" to directly owning a portfolio of remarkable companies. Leave Wall Street & Robo-advisors behind!
