S&P 500 hits record amid high inflation and COVID-19 cases

The S&P 500 rose 0.2 percent to another record high on Wednesday.

Investors shrugged off a report showing that US consumer prices rose 5.4 percent in July from a year ago.

Mike Loewengart, managing director of investment strategy at E*TRADE Financial, said that “while inflation continues to run hot, it’s likely that investors are already pricing it in”.

Seema Shah, chief strategist at Principal Global Investors, said that the report “tentatively suggests that inflation may have peaked”.

Meanwhile, Barry Gilbert, asset allocation strategist at LPL Financial, said that because of the rise in COVID-19 cases in the US, “we could still see some drag on economic growth as some restrictions are reintroduced and consumers potentially become more cautious”.

Nevertheless, Gilbert added that “we believe the S&P 500 is still likely to see more gains through the end of the year”.