Yesterday was one of the craziest days of 2022. US CPI data came in …US markets puked almost 3-3.5% from highs and once again reversed to close up nearly 3% up.
Source : Sentimentrader
With this, it seems like a big rate hike (maybe 75 bps is already priced in ) by the market.
0 voters
CPI data days are becoming huge market moving days.
As inflation numbers came in lower than expected, markets expectation of a slowdown in rate hikes and fed eventually pivoting are slowly getting backed by data.
Nasdaq closed up 7.5% , recovering 25% of its yearly losses in a single day !!!
And dollar index had it’s worst fall in last 13 years, giving a massive break down breaching 108.
But, it is also important to be wary of such sharp moves in a bear market as per the info in this tweet
We had 14 days where Nasdaq had 6% + moves between 2000-02 and 4 days during 2008-09 before making a bottom.
For now, it’s reasonably safe to assume it can only be a ferocious bear market rally and act accordingly.
Wow this really is so interesting. I would have never known that markets rally like this during bear markets. I am just half year old in the markets. This is fascinating to me.
Take any stock, look at bear markets. You will find it bounce on the upside during the bear phase.
Look at RELIANCE in 2008.
That is why making money in bear markets is tough they say. Short at wrong time account = gone.
Another round of 3% upmove in Nasdaq and 1.5% dow as US PPI (Producer price Index) which tracks the changes in input or raw material prices.
Good news for markets overall.
I want to thank all the people who bought nasdaq and took it 3% up, i had bought some mon100 in the beginning of this month.
I saw nasdaq chart just now. it has started to fall. My happiness short lived. At least for couple of seconds i was happy.
2.5% is not bad 
yeah i really hope it finds support at 11670 region and bounces back up.
All the US market indices rallied between 2-4% and closed above key psychological levels
Dow jones fut - closing above 34200-300
Nasdaq fut - above 12000
S&p fut - well above 4000
As fed chairman indicated that there might be a slowdown in rate hikes going forward.
But, what I feel though,market might have factored in mostly about this slowdown in rate hikes from last few weeks. What will be interesting is…how far can the US market sustain the rally going forward?
Irrespective of US market movement, our markets are in different orbit and the possibility of us topping out at a different time compared to other markets is also a possibility to consider.
Inflation is cooling down not only in India but also elsewhere in the world.
For eg: US CPI came in at 7.1% , 0.2% lower than expectation and resulted in a sudden 2.5-4% spurt in dow and Nasdaq …but all the gains were wiped out during the day to end flat.
With all the volatility amidst inflation cooldown, it’s interesting to note that S&P and other US indices have been basically flat from last month’s CPI data day to this month.
Slightly above the expectation numbers. But,markets aren’t reacting that negatively like they used to few months ago. Anything within the tolerable range, market is in the show goes on mode.
With our CPI numbers being hotter than expected and an upward resumption in oil prices, the fears with regards to inflation are slowly coming back again.
Market kind of anticipates that we are not yet at the end of the rate hiking cycle but definitely nearing the end of it and therefore is prepared for smaller hikes.
Yesterday was the first day we saw some bullish sentiment in frontline stocks like ITC, infy, reliance and FIIs are also net buyers from last 3 days in cash market. What needs to be seen is will this buying continue? And market isn’t yet above budget day highs so till that level is breached, market is expected to be in range between 17600-17900.
Do you see a change in range? I certainly have my doubts but I’m a bull 
so there’s always some hope 
CPI data came in higher than expected and the rate cuts expectations from March vanish into thin air. Markets previously considered 6-7 cuts this year whereas now mrkt is considering only 4 cuts
US markets fell the most since March 2023 yesterday. That’s how strong and stable global markets were in 2023.
Let’s see what’s in store this year 
