The week has been a wreck
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Stock Market Today: S&P 500 suffers third straight weekly loss after hot inflation data
Posted: 1 day ago
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Stocks close lower Friday after hot inflation report; major averages log worst week in 2023: Live updates
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". . .The report added to worries that the Fed may have to keep rates higher for longer to quell inflationary pressures.
Liz Ann Sonders, chief investment strategist at Charles Schwab, believes there is more to the market’s downturn besides the PCE numbers.
“Another reason why the market is having trouble to some degree, I think, is not just about inflation being hotter or concerns that the Fed has to stay tighter for longer,” Sonders said on Friday.
“But there was just a lot of speculation that kicked back in —speculative froth. And the market tends to move in a contrarian fashion when sentiment gets a little too frothy. So I think some of the move has has to do with sentiment. Not just these macro forces,” she added.
The strategist believes that inflation cannot come down without a broader economic downturn.
“I think something would have to give either broadly in the economy, or more specifically in the labor market, to bring the immaculate disappearance of inflation,” Sonders said. “Without very that commensurate hit to the economy or the labor market, I think it’s a stretch.”
Lea la cobertura del mercado de hoy en español aquí.
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Stocks wrap up worst week of the year
U.S. stocks ended lower on Friday, wrapping up their worst week of 2023.
slid 1.0% and 1.7%, respectively. The Dow fell as much as 510 points, or 1.54%, earlier in the trading session.
— Hakyung Kim
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