Wall Street wobbles as inflation rally dissipates

“We’ve had developments over the past few days that suggest the environment may be improving a bit,” Anthony Saglimbene, global market strategist at Ameriprise, told Bloomberg Television. “But inflation is still very, very high. There is a lot of work for the Federal Reserve to do to keep raising interest rates.”

Equities were bolstered by a better-than-expected earnings season, with companies that underperformed analysts’ estimates actually being rewarded with the biggest stock gains in at least five years.


S&P 500 companies that missed expectations rose 0.6 percent after the results were released, according to data compiled by Bloomberg, in stark contrast to an average 1.2 percent decline recorded during the earnings season since 2017 . This suggests that investors had already priced in negative sentiment ahead of the reporting season kicked off.

In company news, Disney shares rose after reporting better-than-expected subscriber growth for its streaming service and announcing it would increase the price of Disney+ by 38 percent. Six Flags Entertainment Corp. crashed after its theme parks drew fewer visitors and failed to capitalize on the demand for travel and entertainment that has boosted its competitors.

The 60/40 portfolio, prized for decades for its combination of decent returns and relatively low volatility, is down 11.5 percent so far this year. Is it time to abandon the strategy entirely, or does it just need to be adjusted? Give your opinion in the anonymous MLIV Pulse survey.


The Market Recap Newsletter is a summary of the trading day. Get it every useday afternoon.

https://www.smh.com.au/business/markets/asx-set-to-open-lower-as-wall-street-rally-dissolves-20220812-p5b98t.html?ref=rss&utm_medium=rss&utm_source=rss_business Wall Street wobbles as inflation rally dissipates

Brian Lowry

InternetCloning is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – admin@internetcloning.com. The content will be deleted within 24 hours.

Related Articles

Back to top button