May 20 Weekly Market Update

Stocks got off to a rocky start this week. Inflationary concerns remain front-and-center in the minds of investors right now, although a surge in global COVID-19 cases is certainly not helping.

On the inflation front, thus far, Federal Reserve Chairman Jay Powell has stood firm on the belief that inflation is only expected to be a shorter-term, transitory issue tied to the reopening of the economy. While that may be true, some investors are getting concerned that the Federal Reserve may react too late in raising rates to eventually quell inflation. Prices continue to rise across the U.S. economy. Surging demand and supply chain bottlenecks have led to inflation in everything from raw materials such as iron ore to agricultural commodities.

The U.S. continues to be a world leader in the roll-out of COVID-19 vaccines, and thus the number of new cases has been trending in the right direction. That has not been true in other areas of the globe as cases continue to spike in Taiwan, India, and elsewhere. Nations such as Singapore are also becoming concerned about the potential dangers of COVID-19 variants that are emerging. In light of these more dire trends, President Joe Biden announced this week that the U.S. would share at least 20 million doses of U.S.-approved vaccines with other countries by the end of June.

Be safe and be well.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.