![]() An earlier version of this incorrectly said the Covid low in 2000. But sometimes markets move more because of positioning and trading, not for any fundamental reason.Ĭorrections & Amplifications: The S&P 500, at its low, had retraced half the gain it had made from the Covid low in 2020 to its peak in January 2022. It’s an unsatisfying reason, especially in the midst of a bear market, and everyone looking for a narrative that could help reverse the painful losses. That’s an important level for market technicians, and when it was hit, it appeared to set off a wave of profit-taking in put options that had become profitable, according to Bloomberg, which translated into actual buying, especially as those who were short the market got squeezed. The S&P 500, at its low, had retraced half the gain it had made from the Covid low in 2020 to its peak in January 2022. The most likely explanation is a technical one. It’s possible, but I’m reluctant to buy it. After the CPI print, expectations for peak fed-funds hit 4.9% or so, a massive capitulation by the market, which also seemed to abandon the notion that the Fed would cut rates sometime soon. Investors might also be betting that inflation has peaked, and, perhaps, expectations for Fed rate hikes. Progressive (PGR), the insurer, fell 0.6% after missing forecasts. (TSM), which beat earnings expectations, said it warned of weaker chip demand but still gained 5.2%. For every company like Delta, there was another that offered the bad news we’d expected to hear. “Earnings remain the best catalyst for a rally and are the best explanation of the recovery stocks have seen since the huge spike down on the CPI report,” writes Louis Navellier of Navellier & Associates.īut still not necessarily a good one. In this market, that’s considered good news, perhaps even good enough to explain the rally. ![]() ) missed earnings estimates but found other ways to impress investors, while And he’s not wrong.Įarnings are one possibility for the gain that has been put forward. “Today’s market reversal was a head-scratcher,” writes Oanda’s Edward Moya. 2022 Upgrade Electric Domino Train Toy Set, Creative Automatic Domino Train, Dominoes Rally Train Sets, Locomotive Dominos Train Toys for Kids Boys and Girls Age 3-12 (180 Dominoes, Blue) 4. It literally came out of nowhere-and left us grasping for possible reasons. There wasn’t any new data, no headline-making speeches, no event that occurred just after the open to spur such a move. And it’s left market observers like yours truly wondering what the heck just happened. It was a massive rally, and one that came out of nowhere.
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