US inflation to “roll over”

The S&P 500 rose 0.4 percent last week, its third consecutive weekly gain, to close at a record high.

Stocks have regained momentum as fears of inflation recede.

Despite a report on Thursday showing that US consumer prices rose 5 percent from a year earlier, the fastest pace in nearly 13 years, many economists agree with the Federal Reserve in thinking that the spike in inflation is transitory.

“I refuse to hyperventilate over inflation,” Rosenberg Research president David Rosenberg wrote in a note on Friday. “My forecast is slower growth, inflation peaking out and rolling over and a bull flattening in the yield curve.”