The market took a big step forward to end what was a difficult January. Investors poured back into equities after comments from the US Treasury’s top economist that they see inflation easing in 2022.
We ended a volatile week with one more whipsaw day. Thankfully, this one whipped to the upside. It seems the strong earnings week finally lifted sentiment in the market, overcoming fears of inflation and geopolitical events. Will it stick?
It was another tough day for the stock market. Indexes opened higher, but then faded throughout the day to close lower. The rally attempt from Monday’s low is still intact but the performance since then isn’t looking good. Will indexes fail Monday’s low and go further down, or will they find support and move higher?
Jerome Powell says Inflation is bad and possibly getting worse. While the initial release from the Fed meeting met expectations, which predicted an interest rate hike in March, markets turned fearful again when comments from Powell showed much more concern than anticipated.
Markets were lower on Tuesday as investors awaited the Fed’s interest rate decision on Wednesday. The energy sector tracked oil prices hire on fears that the Ukraine standoff would put pressure on supplies.
Markets rebounded after a massive dip in the morning brought on by worries over the Fed interest rate decisions mid-week and what’s happening between Russia and NATO over Ukraine.
That’s four days in a row with a long upper wick from a failed morning rally and a dismal closing range under 10%. Panic sets in for investors as the Fed’s rate hike decision approaches to fight higher inflation while risking the possibility of a recession.
A morning rally attempt failed, turning into more declines for the major indexes. Chinese stocks outperformed after China cut interest rates.
Markets continued to fall as actions from a more hawkish Fed loom in the near future. Two rally attempts in the Nasdaq couldn’t hold on today and investors fled to defensive sectors.
Equity markets fell for another day as Treasury bond yields hit their highest level since the pandemic began.