Stocks Trim Gains as Inflation Concerns Increase: Markets Wrap

Reuters

Marketmind: One investor’s rebound is another’s bear rally

With the Dow Jones snapping out of its longest weekly losing streak in nearly a century and scoring its best week since 2020 last Friday, the narrative across stock markets has swiftly moved from meltdown fears to hopes of a rebound. But there are contrasting expectations at play: some strategists believe the S&P 500’s 9% bounce back from its May 20 lows could in fact hide a bear rally, or in other words, a money trap before a deeper spiral lower. Still, capital is making its way back to the stock market with $20 billion flowing to equity funds last week, the largest inflow in 10 weeks, according to BofA citing latest EPFR data.