Traders have so far mostly shrugged off temporary concerns about inflation and the Federal Reserve getting ready to raise interest rates, as well as fears over the impact that the Omicron variant of Covid-19 may have on the economy.
It’s a bit unclear why the 10-year Treasury bond yield still remains relatively low, at just about 1.77%, given the chances of rate hikes and the fact that inflation is so high.
Wyett added that investors need to keep an eye on Washington for the upcoming midterm elections in November.
According to forecasts from FactSet Research, analysts are still expecting earnings for the S&P 500 to rise nearly 10% from last year.
Stocks entered a bear market, albeit briefly, at the start of the pandemic.