Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Tuesday, Dec. 31, 2019. U.S. stocks fell in thin end-of-year trading, as rising tensions in the Middle East drove some profit taking after one of the strongest years for equities in the past decade.
Locked
Why stocks swung 5% in one day
It’s the first time since July that the S&P 500 wiped out an intraday decline of more than 2%, yet another of the wild swings is a signature of 2022’s stock market as traders struggle to guess the Fed’s policy path and its impact on the economy.
By Lu Wang and Vildana Hajric
(Bloomberg) – A shock turnaround in equities sent Wall Street searching for something — anything — to explain how yet another red-hot inflation number translated into one of the best days of the year.
Among the answers: increasingly sturdy positioning including well-provisioned hedges, a watershed moment for chart watchers, and several less-than-terrible earnings reports. Throw in some short covering, and the result was a trough-to-peak run-up in S&P 500 futures that reached 5.6% at its widest.
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