Supply chain problems may be near an end

The S&P 500 rose 0.7 percent on Tuesday, its fifth consecutive gain.

US stocks have been boosted by strong third-quarter earnings reports. 82 percent of S&P 500 companies that have reported earnings beat expectations, according to FactSet.

“The financials got earnings season off to another strong start, but let’s be honest, COVID and supply chain issues aren’t going to impact this group. Now it gets very interesting to see what other industries will have to say about the health of the economic recovery,” said Ryan Detrick, chief market strategist at LPL Financial.

While supply chain issues has the potential to derail the market rally, some say the worst may be near an end.

“There's a very good chance that a year from now that we won't be talking about supply chains at all,” said JPMorgan Chase CEO Jamie Dimon.

Analysts at Jefferies said in a recent report that while the global supply chain has been stretched thin, “we may be already witnessing the worst of it” and the “impact is likely to ease” by the first half of 2022.