![]() ![]() Stocks in February have pulled back from a scorching January, so bullish sentiment among individual investors that prices will rise over the next six months plunged to 21.6% in the latest week, down from 34.1% last week.īullishness is below an historical average of 37.5% for the 64th week out of the past 66, the survey by the American Association of Individual Investors said. Lea la cobertura del mercado de hoy en español aquí.Ĭorrection: An earlier version of this story misstated the move in Microsoft shares. "Without that commensurate hit to the economy or the labor market, I think it's a stretch." "I think something would have to give either broadly in the economy, or more specifically in the labor market, to bring the immaculate disappearance of inflation," Sonders said. The strategist believes that inflation cannot come down without a broader economic downturn. So I think some of the move has has to do with sentiment. And the market tends to move in a contrarian fashion when sentiment gets a little too frothy. "But there was just a lot of speculation that kicked back in -speculative froth. ![]() "Another reason why the market is having trouble to some degree, I think, is not just about inflation being hotter or concerns that the Fed has to stay tighter for longer," Sonders said on Friday. Liz Ann Sonders, chief investment strategist at Charles Schwab, believes there is more to the market's downturn besides the PCE numbers. The report added to worries that the Fed may have to keep rates higher for longer to quell inflationary pressures. The core personal consumption expenditures price index, the Fed's preferred measurement of inflation, rose 0.6% in January and 4.7% from the prior year, coming in above economists' expectations. Shares of Microsoft and Home Depot fell 2.2% and 0.9%, respectively. The Nasdaq closed 3.3% lower, notching its second negative week in three.īoeing shares slipped more than 4% after the company temporarily halted delivery of its 787 Dreamliners over a fuselage issue. The Dow fell almost 3.0% this week - its fourth straight losing week. The S&P 500 was down 2.7%, marking its worst week since Dec. The major averages also ended the week with their biggest losses in 2023. The Dow fell as much as 510 points, or 1.54%, earlier in the trading session. The Nasdaq Composite slid 1.7% to end at 11,394.94. The Dow Jones Industrial Average fell by 336.99 points, or 1.0%, to end at 32,816.92. stocks fell sharply Friday, wrapping up their worst week of 2023, after the Federal Reserve's preferred inflation gauge showed a stronger-than-expected increase in prices last month. ![]()
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