© Reuters. Has the Stock Market Begun to Turn Around?
The S&P 500 (SPY) has now posted gains in three straight days, even while metrics continue to show an increase in inflation. It seems as though as we are swimming in those calm waters I spoke of on Monday, but I must caution that the last few days have shown lighter trading volume than usual. So, is this the new normal, or will we return to the volatility that was so prevalent the previous two weeks? Read on below to find out….(Please enjoy this updated version of my weekly commentary from the POWR Value newsletter).
Stocks started the week higher as worries surrounding inflation seemed to subside a bit after multiple Federal Reserve leaders assured investors that inflation would be temporary. Investors pushed stocks higher across the board, with all three major indexes seeing strong gains. Eighty-three percent of S&P 500 stocks rose, while twenty-two out of the 30 Dow components gained.
The market finished lower on Tuesday as investors digested disappointing economic data. The Conference Board’s gauge of consumer confidence eased a bit in May to 117.2 from a downwardly revised 117.5 reading in April. Plus, new home sales fell 5.9% in April following a significant downward revision in March as an increase in property values is limiting demand.
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