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Volatile Equity Market Amidst Inflation Concerns

Writer's picture: CUHK Quant Trading SocietyCUHK Quant Trading Society



Last week, the US stock market experienced significant volatility as investors opted for safe-haven assets such as US Treasury bonds and gold. In September, the Consumer Price Index (CPI) in the US grew at the slowest pace in two years, though "supercore" inflation remains high. Despite the Fed fund futures indicating a low probability of a further hike, it is becoming more probable that rates will remain "higher for longer," causing stock markets to decline and trigger breakdown patterns. Amneal Pharmaceuticals (AMRX) demonstrated a perfect illustration of the breakdown pattern among the equity market.


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