Why Growth Stocks Popped on Tuesday
Growth stocks with a consumer business focus were bouncing sharply higher on Tuesday as inflation data came in cooler than expected and investors speculated that rate hikes may start slowing down.
Shares of fintech stock Block (NYSE: SQ) were up as much as 9.3% in morning trading, Roku (NASDAQ: ROKU) was up 13.9%, and Stitch Fix (NASDAQ: SFIX) was up as much as 17.9%. Shares are up 6.2%, 3%, and 6.6% respectively at 12:10 p.m. ET.
Inflation data today is what the market is focused on. U.S. Consumer Price Index (CPI) data out today shows a 7.1% increase in prices over the past year, but prices actually dropped 0.1% from October to November. Rising inflation is the main reason the Federal Reserve has been raising interest rates all year and the market is speculating that will slow as inflation eases.
Source Fool.com
