Investors found reasons to be optimistic despite soaring inflation and a hawkish Fed. Oil prices soared again, but that was not enough the dampen the mood.
We have our inflation data now as Consumer Price Indexes for March were released today. Large-cap stocks declined while small caps advanced .
cord-high inflation and more motivation for the Fed to act aggressively.
Friday was a continuation of this choppy week that saw more Fed officials take a hawkish stance toward policy to get inflation under control.
Stocks weren’t sure what to do on Thursday, but Bonds sold off as investors continue to digest what Fed actions may be in store for later this year.
A look at the Fed meeting minutes didn’t do much to alleviate investor worries over inflation and near-term Fed actions. That created a wildly volatile day for equities while the US Dollar strengthened and Treasury yields rose.
Brainard turns hawkish and sucks the energy out of the market. Equities dropped as yields soared.
Equities rallied on the first day of the week. Large-cap growth stocks drove the rally while Twitter soared 27% on news that Elon Musk bought a significant stake in the company.
Small-caps led the way higher on Friday, but defensive sectors continued to top the sector list with mixed news in economic data.
ses among continuing worries over the war in Ukraine and the Fed’s response to inflation . Chinese stocks moved lower on disappointing economic data and COVID outbreaks.