Traders work at the New York Stock Exchange (NYSE) on Wall Street in New York.
Angela Weiss | AFP | Getty Images
Stocks jumped on Thursday after a weaker-than-expected rise in the consumer price index dragged down bond yields and the U.S. dollar on hopes that the Federal Reserve could be less aggressive in its fight against the inflation. The Dow Jones Industrial Average increased by more than 2.5%, the S&P500 increased by more than 4% and the Nasdaq increased by more than 5.5%.
While encouraged by the strong rally, recouping Wednesday’s steep equity losses and more, we are hesitant to fully accept this decision as a brutal turning point in the year for investors, fearing it could be a another short-lived bear market bounce.