Stocks could fight back after Tuesday’s drubbing, although the lack of any major Main Street reading clouds the market outlook for the day. Thursday’s inflation data could keep traders on tenterhooks. Economic data from China that suggested the world’s second-largest economy has fallen into deflation will likely stir anxiety among traders.
As Moody’s dropped another bombshell, this time regarding the banking sector, stocks swooned on Tuesday. After a sharply lower open, the major averages fell further in early trading only to claw back some of the losses over the course session. All three major averages as well as the Russell 2000 Index ended Tuesday moderately lower.
