Market Call: Another Rollercoaster Ride.

Friday was another wild ride on the S&P 500 rollercoaster. At first, stock prices rose after April's PCED inflation rate released at 8:30 am matched expectations. But then they dropped after a recessionary reading in May's Chicago Purchasing Managers Business Barometer at 10:00 am (chart).

The unexpected decrease in the business barometer partly reflected a steep drop in the new orders index, which tumbled by 9.2 points to its lowest level since May 2020. Meanwhile, the production index jumped 8.1 points following five consecutive months of decline, reaching its highest level since January.