The NASDAQ, DOW and S&P500 stock rally is expected to last throughout Thanksgiving. There has been a bump because of signs inflation rises are slowing down which reduces some future investment risks. Nov 10th 2022 CPI From BEA. We want to understand what happens between economic data and how stock markets respond. CEOs, investors, and even politicians want to understand stock markets in order to raise value and capital. (What type of actions create large scale stock increases? From an older study we might see broad based economic announcements have an impact. Perhaps if we looked at all the Bull & Bear markets and cross analyzed them with announcements/events we might gain insight historically. We can also consider that major events such as stopping/starting oil, Russian conflict, supply chain issues, etc. create market volatility. I would also suspect anything that is known for decision making to impact the economy is likely to have some effect i.e. a large scale infrastructure innovative improvement that lowers elemental transaction costs through synergy. What we can say is that lower inflation has broad impact on many markets so changing that is like changing a fundamental ingredient. )
A couple of articles I really like:
Why the Nasdaq Is Soaring Even as Inflation Remains High from the Motely Fool
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