Why the Stock Market's Inflation Battle Is Far From Over
The stock market was mixed on Wednesday, with most major market benchmarks gaining ground. Yet not every index participated in the rally, as the Dow Jones Industrial Average (DJINDICES: ^DJI) was down more than 100 points at 12:30 p.m. ET.
One big problem for stocks over the past year has been the persistence of inflationary pressures. For the first time in decades, high inflation rates have caused investors to reassess the long-term value of the stocks they own. In many cases, individual stocks have failed to pass the test, leading to dramatic declines.
The latest release of the Consumer Price Index (CPI) report from the Bureau of Labor Statistics initially pushed stocks higher. Yet many investors seem far from certain that inflation has ceased to be a problem, even as price increases have slowed.
Source Fool.com
