Stocks “to grind higher”, inflation could be key

The S&P 500 fell 0.3 percent last week, snapping a five-week winning streak.

Many analysts expect stocks to resume its rally though.

“I think we could be pretty constructive for the next couple of quarters,” said Trivariate Research founder Adam Parker.

Inflation could be key, said Bleakley Advisory Group chief investment officer Peter Boockvar, adding that it “will continue to dominate the headlines and the news flow in markets and what the Fed does”.

National Securities chief market strategist Art Hogan said he expects stocks to “continue to grind higher”.and supply chain issues to get sorted out.

In contrast, Independent Solutions Wealth Management portfolio manager Paul Meeks thinks that supply chain problems has resulted in a semiconductor shortage that might take years to resolve.

“This might be a problem that persists deep into 2023,” he said.