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Financial markets reversed on Monday 24 May, 2021 as inflation concerns receded on the back of weaker-than-anticipated economic data. Tech stocks led the way.
Late Stock Surge in May Sets the Stage for June
Source: StockCharts NASDAQ Weekly Performance Metrics
In the stock market bearish trading sessions can wipe out profits in next to no time at all. What took years to build up can be vanquished by negative sentiment within a day. Such was the case for most of May 2021. Successive selloff periods placed heavy pressure on equities during the month, but ultimately the bears were stopped dead in their tracks. On Monday, May 24, 2021, economic data confirmed what many already knew: weaker economic data put the brakes on rising inflation. Once the inflation news permeated the markets, it didn’t take stocks long to react.