STATE OF BUSINESS: End of Inflation?

As peace rumors set off price breaks in both stocks and commodities, Manhattan's Communist Daily Worker shrilled: "Wall Street shivers with fear at the news of possible peace in Korea." Actually, no news is more bearish for the market than war itself, as the Korean war demonstrated in 1950, when it knocked down stock indexes as much as 26 points (TIME July 10, 1950).

But any sudden, unexpected news almost always upsets a free market. The Chinese overtures caused many stocks to drop as much as two points, a few (notably the peace-vulnerable aircrafts)...

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