US stocks hit new records even though the S&P 500 is in its tightest range since the COVID-19 pandemic swept global financial markets. Thanks to healthcare stocks and tech stocks, the index managed to rush to its third consecutive session high, closing 0.31% higher than the previous day. This figure is almost twice that of the pandemic lows last March 2020. And although the pace of growth is slowing, it still hovered at an average of 0.5% every day.
Goldman Sachs strategist David Kostin said the market is reasonably priced in the context of interest rates.
So, since the latest report indicates an ongoing labor market recovery, where US jobless claims have declined for three consecutive weeks already, it is likely that stocks will gradually decline in the coming months.
As such, investors will closely monitor the possibility of early tapering, but should not set aside the recent outbreak caused by the Delta strain which may shake economic recovery, as well as the suppression of China.
