Why Stocks Swung 5% in One Day
- Stocks far from screaming bargains after $15 trillion wipeout
- Large reversals ‘nature of the beast these days,’ Sonders says
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A shock turnaround in equities sent Wall Street searching for something -- anything -- to explain how yet another red-hot inflation number translated into one of the best days of the year.
Among the answers: increasingly sturdy positioning including well-provisioned hedges, a watershed moment for chart watchers, and several less-than-terrible earnings reports. Throw in some short covering, and the result was a trough-to-peak run-up in S&P 500 futures that reached 5.6% at its widest.