S&P 500 at record high, could go higher still

The S&P 500 rose 2 percent last week, ending at a record high of 4,697.53 after a run of seven consecutive positive sessions.

Some analysts think that stocks could soar to new heights in the week ahead.

“The important drivers of the market, I think, remain intact — earnings and interest rates,” said Leo Grohowski, chief investment officer at BNY Mellon Wealth Management.

“Right now the path of least resistance is higher,” said Steve Sosnick, chief strategist at Interactive Brokers.

And the threat from COVID-19 is receding, with Pfizer board member Dr Scott Gottlieb, a former commissioner of the Food and Drug Administration, saying that the pandemic could be over in the US by January.

Another threat, though, could remain: inflation.

“The biggest concern is inflation which we don’t think is transitory,” said David Donabedian, chief investment officer of CIBC Private Wealth Management. “I would look for a rate hike almost immediately after the tapering process is done which is mid-2022.”