Market bets on whether the Federal Reserve's rate hikes would lead to a recession in 2023 have become a primary focus for the equity markets and for those who trade them.
As a result of the Fed's focus on inflation, the correlation between individual securities and the consumer price index appears to have reached its highest level Thursday since the flash crash of 2020.
Investors rush to bid up — or sell off— stocks in the wake of the issuance of the consumer price index report, the Fed's preferred measure of inflation.
On Thursday, the Labor Department issued data showing that top-line inflation rose 6.5% in December, down from 7.1% in November, in a sign the Fed's aggressive rate hike campaign is easing inflation.
How Did Stocks React?
According to the "movers tool" in Benzinga Pro, the following stocks moved higher or lower just after the CPI print.
All stocks in this list had a volume of over 3,000 shares traded in the premarket session and a market cap of over $300 million.
Fastly Inc (NYSE:FSLY) gained 7.7% before experiencing volatility in opening minutes of the regular session.
Blend Labs Inc (NYSE:BLND) fell over 5% before reclaiming those losses in the regular session.
Hyliion Holdings Corp (NYSE:HYLN) soared roughly 5% before selling off.
Under Armour Inc Class A (NYSE:UAA) gained 4.47% before investors sold for profits.
Solid Power Inc (NASDAQ:SLDP) gained 3.81% before selling off, but the stock recovered all losses and is trading 3.6% higher at the time of writing.
Adobe Inc (NASDAQ:ADBE) saw volatility, climbing 3.46% before falling and reclaiming some of the losses.
Clover Health Investments Corp (NASDAQ:CLOV) fell 3.34% before investors bought the dip, carrying it 0.42% higher at the time of writing.
Wheels Up Experience Inc (NYSE:UP) gained 3.26% before selling off.
Velo3D Inc (NYSE:VLD) gained 3.19% before falling at the opening bell.
Euronav NV (NYSE:EURN) gained 3.15% in premarket trading before gaining an additional 2% at the time of writing.
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