U.S. Equity Markets
Reverse!
On Thursday, following a higher-than-anticipated CPI print, 8.2% v. expected 8.1%, a shock turnaround in equities sent Wall Street searching for something -- anything -- to explain how yet another red-hot inflation number translated into one of the best days of the year. Among the answers: increasingly sturdy positioning including well-provisioned hedges, a watershed moment for chart watchers, and several less-than-terrible earnings reports. Throw in some short covering, and the result was a trough-to-peak run-up in S&P 500 futures that reached 5.6% at its widest point during the day.