Earlier this week, the S&P 500 reached its sixth-straight record, opening the second half of 2021 with a boom. US stocks are exceeding predictions and reaching record highs despite spikes in inflation.
The recent success of the stock market has deflated worries of inflation as a result of a quick re-opening of the economy after year-long lockdowns. FBA previously reported, “The Consumer Price Index (CPI), which measures overall inflation of the U.S. dollar, rose 0.8% in April, capping off the largest 12-month jump in prices since the period ending September 2008 after the beginning of the Great Recession.”
However, despite price surges, “A separate reading showed the U.S. labor market continued to heal from the pandemic, with initial claims for unemployment benefits falling to another pandemic low. Stocks edged higher on the inflation and labor market news.” A range of companies experienced successful stock trends, including Chevron, Nike, and West Texas Intermediate.
“Better news on Covid, vaccinations, re-openings, economic growth, and earnings fueled the advance. Nearly equal gains were achieved in both quarters by a rotation in leadership allowing broad participation,” said Jim Paulsen, Leuthold Group chief investment strategist.
ARTICLE: ANTOINETTE AHO
MANAGING EDITOR: CARSON CHOATE
PHOTO CREDITS: FORTUNE
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