STOCK MARKET WATCH: Friday, 12 July 2024

[progree]

1. The 0.9% drop in the S&P 500 when we just had the best inflation report in years,

Odd there's a sizable drop (0.9%) in the S&P 500, which has about 85% of the U.S. market by capitalization, after the best inflation news in years (see below for CPI graphs)

The below somewhat xplains it --

https://finance.yahoo.com/news/stock-market-today-stocks-fall-from-records-as-tesla-nvidia-lead-tech-sell-off-200114295.html

Stock market today: Stocks fall from records as Tesla, Nvidia lead tech sell-off, Yahoo Finance, 7/11/24

[some excerpts] Tesla (TSLA) shares snapped an 11-day winning streak to drop more than 8% in its worst day since January after a Bloomberg report that the EV maker will delay the unveiling of its robotaxi.

Investors flocked to rate sensitive sectors like Real Estate (XLRE) and Utilities (XLU) following June's cooler than expected inflation print.

The Consumer Price Index (CPI) last month declined 0.1% over the previous month and increased just 3.0% over the prior year. The annual gain was the slowest rise in consumer prices since early 2021.

Also, the 10-year Treasury yield dropped a sizable 0.087 percentage points from 4.280% to 4.193%, as odds increased for a Fed rate cut in or before September.

The good news inflation graphs:




Blue: CPI (year-over-year), Red: Fed Funds Target Rate, Thin Light Blue: CPI rolling 3 month average (annualized)
November 2019 to June 2024 (pre-pandemic to latest)

More inflation graphs and links at:
https://www.democraticunderground.com/?com=view_post&forum=1014&pid=3270004
https://www.democraticunderground.com/?com=view_post&forum=1014&pid=3270154