After several days of volatility and concern over rising inflation, the stock market rebounded today as investors gained confidence in the economy’s ability to weather the storm. The Dow Jones Industrial Average rose 1.5%, while the S&P 500 and Nasdaq Composite each gained more than 1%.Source:- money control
Investors had been spooked by a higher-than-expected inflation reading earlier in the week, which led to concerns that the Federal Reserve might raise interest rates sooner than expected. However, today’s data showed that inflation may not be as persistent as some had feared, with core consumer prices rising just 0.7% in April, below economists’ expectations.
Additionally, several major retailers reported strong earnings, providing further evidence that the economy is rebounding from the pandemic. Target, Walmart, and Home Depot all beat earnings estimates, with Home Depot posting a 31% increase in same-store sales.
Despite the positive news, some analysts caution that the market may continue to experience volatility in the coming weeks as investors grapple with uncertainty around inflation, interest rates, and the pace of the economic recovery.
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