⭐️⭐️ 1️⃣6️⃣ October 2022 Thursday How will the 🇺🇸[USD] market perform after the CPI ?

On Wednesday 12 October the 🇺🇸 U.S. stock market was depressed and lack direction. The S&P 500 fell 11.81 points, or 0.3%, to 3577. The Dow Jones Industrial Average fell 28.34 points, or 0.1%, to 29210. The Producer Price Index (PPI) for September 2022, an inflation gauge, had rose more than expected. 

On Thursday morning, the Futures market was in steep losses😱, expecting the Consumer Price Index (CPI) to be higher. True enough, the CPI released at 8:30am showed inflation rose 0.4%in September 2022, and was up 8.2% year-on-year. 

The stock market initially took in a big drop🥶 with Dow Jones Industrial Average opened at 28755 and fell to 28660📉. Then it turned around to trade higher with remarkable rise of the three major indexes📈. The Dow Jones Industrial Average gained 1342 points, or +3%, to 30,002.23 and is still rising. The S&P 500 posted its widest trading range since March 2020, going from being down 2.39% to rising up 2.42%. The Nasdaq Composite gained 2.07%.

The market is truly volatile, predictably unpredictable. Stocks fell to their lowest levels since 2020 and then post a stunning rebound. 

Gains in energy and bank stocks led the reversal. Shares of $Chevron(CVX)$📈 gained 5%. Bank stocks $JPMorgan(JPM)$📈 and $Goldman Sachs (GS)$📈 rose 5.76% and 4.21% respectively. Big technology stocks such as $Apple (AAPL)$📈 and $Microsoft(MSFT)$📈 also rose 3.38% and 4.5% respectively. Semiconductors $Nvidia(NVDA)$📈 and $Qualcomm(QCOM)$📈 surged 4.44% and 4.34% separately. All the above stock prices are still going up with just one hour left of trading before the market close. 

Investors seems to ignore the inflation figure and that shows they think the market is bottom soon🥳. There is also a level of certainty and confidence that with almost same rate of increase in CPI, the Fed will continue with the interest rate hikes as predicted for November and December 2022. 

Stock prices will continue to swing up📈 and down📉 as investors digest more inflation data and earnings season starts.