Inflation Data Impact: Stocks Rally, Analysts Warn Against Repeat

Analyst Jonathan Krinsky believes that the recent hot inflation data is unlikely to trigger a similar rally in stocks as seen 11 months ago. While the consumer price inflation rose 0.6% in August, in line with forecasts, the S&P 500 closed up 0.1% on Wednesday. Krinsky points out that the current market breadth is limited, with only 48% of S&P 500 components above their 200-day moving average, well below the historical average of 76% after a major low. He suggests that the current market landscape may indicate either the slowest/weakest start to a new bull market or one of the longest/strongest bear market rallies.