S&P 500 Reaches New High, Dampened By Rising Inflation

You would think the U.S. stock market would be excited by the $1.9 trillion stimulus the Democrat-dominated U.S. government just passed into law on Friday, 12 March 2021.

But the specter of higher inflation, which portends rising interest rates, robbed the market of much of upward momentum it could otherwise have had. Despite that headwind, the S&P 500 (Index: SPX) still managed to climb enough out of the red during most of the trading day to close at a record high value of 3,943.34 on Friday, 12 March 2021.

That puts the level of the S&P 500 very near the middle of the red zone forecast range on the alternative futures chart.

Alternative Futures - S&P 500 - 2021Q1 - Standard Model (m=+1.5 from 22 September 2020) - Snapshot on 12 Mar 2021

The level of the S&P 500 is consistent with investors focusing most of their forward-looking attention on 2021-Q2.

The news of the week was mixed overall, with rising inflation concerns a common theme in many corners of the world affecting investor expectations for the future.

Monday, 8 March 2021

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