U.S. stocks posted accelerated gains last week as investors set aside inflation fears and welcomed strong earnings data that helped to reinforce continued economic growth. Headline consumer inflation may likely remain elevated through the first quarter of next year, averaging over 5.5% before easing to under 3% by this time next year. The S&P 500 registered it best week since July. Following a near 1% gain in August, consumer spending remains strong despite supply shortages and higher prices, with supports coming from higher wage growth and an elevated savings rate.
Here's what we're reading this week:
The inflation pressures we (BlackRock) expected are here – and are persistent. This is not stagflation, and we remain pro-risk. But confusion over price surges is a risk.
Global equities rallied as the third-quarter corporate earnings season kicked off with strong results in the U.S. BlackRock are focused on signs of cost pressures.
BlackRock watching the global Purchasing Managers’ Indexes this week for read- outs on manufacturing bottlenecks and the strength of the economic restart.
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