From panic to carnival: Sudden market reversal at 12:30 pm due to budget announcement
Just when it seemed to be a market one trip south, there was a big change at 12:30 this evening. Investors who had eagerly hit the sell button moments earlier were scrambling to buy again as the market took a dramatic turn, switching from a seemingly inevitable crash to a sudden boom
The trigger for this slap? The much-awaited unveiling of the national budget.
A perfect storm of fear
The morning was disastrous for Equity. Negative economic indicators and rising inflation fears had sent shock through the markets. By midday, the major indexes had doubled, with analysts charting historical events and predicting potential falls. The story of “Black Wednesday” echoed through the mall, signaling the demise of the previous market.
Budget announcements: a beacon of hope
Then, just after 12:30 p.m., the state budget was released. In contrast to the pre-sale chaos, the paper cited a range of factors that boosted investor confidence. Tax cuts for businesses, increased infrastructure spending and a clear approach to fiscal responsibility have created a wave of optimism in the market
Bullish sentiment is taking over
The market reacted with lightning speed. The initial sell-off quickly reversed course as investors saw the monetary policy as a catalyst for economic growth. The biggest hit companies in the morning, especially technology and consumer sentiment, made the biggest gains. By the closing bell, the major indexes had not only eroded their morning losses but were trading largely, firmly in the bullish zone.
Market experts answer
Market analysts were quick to speculate
