U.S. stocks closed down sharply on Friday, erasing the momentum of early trading attempts to continue to rise based on the rebound of the previous trading day. The previous trading day was called one of the craziest market days in history. The S&P 500 fell 2.4% after gaining 1.2% in the early trading session. The Dow Jones Industrial Average fell 1.3%, while the Nasdaq Composite fell 3.1%. After the early rise, the two indexes also began to decline.
Earlier Friday, the UM consumer confidence survey showed that expectations for inflation next year rose to 5.1% from a one-year low of 4.7% in September, while expectations for inflation in the next five years rose to 2.9% from 2.7% last month, before the stock market began to fall. "This is undoubtedly a negative impact on the market," said Dave Grecsek, managing director of aspirin investment strategy and research in a telephone interview on Friday. "Once people expect inflation to intensify, inflation will become more ingrained and affect people's behavior," said
Grecsek. "People start buying more items today because they feel that prices will only rise tomorrow," which makes Fed 's job "more difficult".
Gresek also said that the stock market opened low and closed high on Thursday and rebounded strongly, which may be driven by technical drivers such as " short cover ".
Yardeni Research also said: "Before the widely concerned CPI report is released, investors may hedge against 's portfolio and rush to replenish positions when the market falls due to bad news." "This also forces unheld short positions to fill up positions, leading to a reversal day."
and BlackRock's chief investment officer Rick Rieder said Thursday's volatility was the "craziest" day in market history. He said some of the crazy volatility that has appeared in the market is driven by short-term options trading.
Brent crude oil futures fell $2.94, or 3.1%, to close at $91.63 per barrel, while US West Texas Intermediate crude oil futures fell $3.50, or 3.9%, to close at $85.61. One reason is concerns about the global economic recession and weak oil demand, especially China's demand, which surpasses support for sharply cutting OPEC+ supply targets.
In addition, the International Energy Agency (IEA) cut its oil demand forecast for this year and next year on Thursday, warning of a possible global recession. In terms of U.S. supply, energy companies added 8 new oil rigs this week, bringing the total rig count to 610, the highest level since March 2020.
Third, China is the world's largest crude oil importer. The unyielding struggle against the new crown pneumonia epidemic after the National Day holiday has also triggered investors' concerns about China's crude oil demand. The country has few infections by global standards, but it adheres to a zero-COVID policy. Also, the U.S. index rose by about 0.8%. The stronger dollar has made fuel prices higher for buyers using other currencies, thus reducing demand for oil.
Leeds Truss (Liz Trass) is in big trouble after his biggest big turn to date, with pounds and bonds still selling.
