- After a selloff in the previous session due to expectations that high inflation might necessitate tighter monetary policy, US shares gave back their gains on Thursday.
- The S&P 500 rose less than 0.1%, powered by advances in materials and technology, after plunging 0.8% on Wednesday, its largest drop in more than a month. Tesla Inc. changed after papers revealed that CEO Elon Musk liquidated $5 billion in stock. Meanwhile, Walt Disney and Beyond Meat both fell after reporting disappointing quarterly results.
- The US cash Treasury market was closed for a holiday.
- Investors are ready for monetary policy adjustments sooner rather than later, as higher-than-expected consumer prices have delivered a setback to assertions that inflation is transitory. Inflationary pressures may drive the Fed to taper at a faster rate or raise interest rates sooner than expected if inflation remains high. Simultaneously, equities are nearing all-time highs as robust earnings and economic growth prospects force the stock market higher.
- Oil struggled to find a direction as investors assessed the likelihood that the White House would interfere to cool prices. Gold was approaching a five-month high, while bitcoin stayed around $65,000. Stocks rose in Europe, while Chinese equities rose in Asia on anticipation that the government will lessen its standoff with property developers. The dollar was stronger against its major counterparts.
