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The markets are in a fragile state and investors aren’t sure what will happen next. On Monday evening, stock futures took another dip following yet another sleepy day of trading with all eyes on crucial inflation data that will be released later this week.
Future contracts tied to the Dow Jones Industrial Average fell by 0.1% along with S&P 500 and Nasdaq 100 futures, each taking a dipped according to recent market trends.
The stock market indexes finished a little higher yesterday. The Dow Jones Industrial Average ended the day with 16 points, which equals less than 0.1% and 300 points earlier that morning it jumped up to new heights! Meanwhile tech-heavy Nasdaq Composite progressed even further reaching an impressive close at just under 1%.
The 10-Year Treasury yield shot up to 3%, the highest in over a month.
The recent bounce in stocks has investors wondering if the event is a bear market rally or if their investment hit rock bottom from this year’s sell-off. No economic data released on Monday and Fed earnings were postponed, leaving markets aside for now as they contemplate what might happen next with such uncertainty around these events.
Ed Yardeni, president at Yardeni Research has spoken and said:
“Since the beginning of the year, we’re seeing an altitude sickness when you look at the valuation multiple,” he shared. “To a large extent, clearly, with the benefit of hindsight, the market was overvalued. A lot of that was in the negative cap seat, big-cap names, related companies. I think we’ve seen a tremendous correction in that area. And now the question is whether the market can accept the kind of earnings expectations that analysts are delivering and whether those expectations will be correct.”
Investors will be tracking a lighter week in company earnings this Tuesday. For example, Cracker Barrel and United Natural Foods are both scheduled to report later.
Consumer price index readings are important to economic data, which is due on Friday. Some investors hope that this reading will show if inflation has peaked or not yet arrived at its peak level so they can time their investments accordingly.
