Stocks moved sharply higher on Tuesday and Wednesday of last week and it seemed as if stocks were going to break out to the upside, but back-to-back headlines reversed those gains and back came the volatility. The first headline came from James Bullard, who is the President of the Federal Reserve Bank of St. Louis, who basically said he favors an aggressive interest rate hiking cycle right off the bat.
This headline caused the Dow Jones to reverse course on Thursday and finish the day down over 500 points. The second headline came on Friday, with news that Russia was days away from invading Ukraine. This headline caused the Dow Jones to lose an additional 500 points.
For the week ahead, we’ll expect more volatility as markets are currently trading off headlines. For economic data, it’s a busy week. We have data releases on inflation, consumer spending, and housing. Let’s see if these data releases matter to the market or if it remains a headline driven market.
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