It was a bounce-back day for U.S. stocks Monday, led by rebounding technology shares, as investors become more comfortable with the current inflation outlook and the pace of the economic recovery. The question for investors remains whether the recent hike in prices is temporary or part of a longer-term trend. Energy and materials companies that are able to pass along higher costs have been in favour, while high-growth technology names have lagged. By Monday’s close, the Dow was up 186, while the Nasdaq and S&P climbed 190 and 41, respectively. The TSX was closed Monday. Monday’s enthusiasm waned somewhat Tuesday as U.S. stocks were fairly flat across the board, while the TSX managed a slight 37-point gain, enough for a new record close. New U.S. housing data showed home-price growth climbed in March to its highest level in 15 years, as strong demand for housing continues to outstrip supply. There were green numbers all across the board Wednesday after the Federal Reserve reiterated its pledge to maintain its economic support despite a recent uptick in inflation. A clear sign that inflation fears are easing was Wednesday’s reading of the Cboe Volatility Index (i.e., the VIX), which dropped to its lowest level since early May. U.S. markets turned in another mostly positive performance Thursday, with the Dow up 141 points, while the S&P and Nasdaq were essentially flat. In another sign of the ongoing U.S. recovery, initial jobless claims fell again last week to a new pandemic low—just over 400,000. In Canada, the TSX posted another modest 29-point gain.
source https://richarddri.ca/n-a-markets-stabilize-as-inflation-concerns-ease/
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