business 24 mins ago
But with more Americans vaccinated and more states reopening activities, the economy could sizzle as retailers, restaurants, hotels, gyms and other service-oriented businesses see a sudden surge in demand.
The stock market has been trading higher on these expectations for months. However, if the strong activity results in a better earnings outlook, it could further fuel the rally. The S&P 500 was trading at a record high Thursday, crossing 4,000 for the first time as the new quarter began. Some of it is factored in, and if there s a risk, it s to the upside rather than the downside, said Sam Stovall, chief investment strategist at CFRA. From an economic perspective, we could be underestimating and that could end up providing a bit of a boost to the stock market unless interest rates rise even further.
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