Markets rise, supply chain problem to last “well into” 2022

Markets rose on Thursday.

The S&P 500 surged 1.7 percent, the STOXX Europe 600 rose 1.2 percent and the Nikkei 225 jumped 1.5 percent.

“So far, the overwhelming majority of large US companies have been able to generate higher profitability despite rising labor costs because sales growth has been so robust. We expect the same to be true in 3Q,” Mark Haefele, chief investment officer of UBS Global Wealth Management, said in a note.

However, supply chain issues may continue to pose problems.

A survey of CFOs has shown that the majority of them expect the problem to last “well into” 2022.