The topic of inflation has been grabbing a lot of financial headlines.
Indeed, financial journalists have “blamed” inflation for recent stock market sell-offs.
On May 11, when the Dow Industrials closed 475 points lower, an intraday headline said (Reuters):
Wall Street drops on inflation jitters, led by tech stocks
The next day, on March 12, the sell-off persisted. Another financial news source noted (CNBC):
Dow tumbles 680 points in worst decline since January as hot inflation reading spooks investors
So, at least two news organizations agree that inflation was the culprit behind the sell-offs.
However, investors who follow the news closely may have done a little head scratching. Meaning — at the start of the same week (May 10) — the Dow climbed to a record high. So, were inflation worries absent on that day? Not according to this May 10 headline (CNBC):
Americans fear highest inflation in nearly a decade
So, same inflation worries, but the Dow…