Skip to content

Stocks Dodge an Inflation Wipeout: Explaining the Tepid Reaction

  • Fed seen on faster hiking path that could bring an early end
  • Retreat in long-dated Treasury yield helps buoy growth stocks

Data that landed like a gut punch on anyone hoping inflation had receded was received with notable poise by investors. Why that happened was the subject of frantic speculation Wednesday on Wall Street.

While odds of draconian rate hikes jumped, so did shares of semiconductor producers, retailers and automakers. Tech stocks as tracked by the Nasdaq 100 Index swung almost 3% from their lows as Tesla Inc., Amazon.com Inc. and Nvidia Corp. ended firmly in the green.