Markets rose on Tuesday, with the MSCI world equity index up 0.57 percent and the S&P 500 up 0.15 percent to hit another record high.
The Leuthold Group’s chief investment strategist Jim Paulsen thinks the stock market could see further gains.
Paulsen noted on Monday that Treasury yields are firming again, “suggesting the Covid variant here is likely to roll over soon and economic activity is likely to pick up”.
Others share similar views on a waning COVID-19 surge in the US.
“I thought there was an indication the South was peaking, and I think it’s pretty clear right now the South has peaked,” Dr Scott Gottlieb, the former Food and Drug Administration commissioner, told CNBC on Monday.
“The percent increases in cases and hospitalizations are declining each week, indicating progression towards a nationwide peak,” Chris Meekins, health policy research analyst at Raymond James, said in a note.
That would be good news for the US economy.
Aneta Markowska, chief financial economist at Jefferies, said that the latest surge is “really just causing a loss of momentum rather than pronounced economic weakness, and there is good chance that it will be pretty short-lived”.
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