(Reuters) – A look at the day ahead in U.S. and global markets from Mike Dolan
A violent rotation from Big Tech into small cap stocks followed the surprisingly benign June U.S. inflation report, while U.S. borrowing rates and the dollar plunged and Japan’s yen stole the currency show.
What’s now become almost traditional market volatility on U.S. CPI day didn’t disappoint on Thursday.
Although there’s been some steadying of the ship early on Friday as major U.S. banks prepare to kick off the second-quarter earnings season in earnest, confirmation of a resumption of disinflation has left its mark.
Seeded by a withering recoil in AI and EV giants Nvidia and Tesla, the Nasdaq turned tail from record highs and plunged almost 2% after the CPI report, even as small caps in the Russell 2000 surged more than 3% to three-month highs on their best day of the year so far.
Less extreme but also…
