The correlation between bad news and stock market performance explained by Goldman Sachs economist

Goldman Sachs economist Spencer Hill explains that the stock market's sensitivity to inflation news is now 12 times the historical norm, indicating that the market is focused on inflation data as a key factor in the Federal Reserve's decisions on interest rates. As fears of a hard landing subside, the market is showing a preference for soft growth data, as it would make additional rate hikes more likely. This "bad is good" reaction to economic data is reminiscent of previous periods in Wall Street history. The upcoming release of economic data, including the ISM manufacturing report and nonfarm payrolls report, will be closely watched by investors.