S&P 500 Closes At ATH High Despite Hot Inflation Numbers and Impending Fed Meeting, Has Best Week in 10 months

Key Takeaways

  • The S&P 500 closed at 4712., which is significantly above the 4,538.43 last Friday. Amazingly, the VIX settled under $19 today after closing a week ago at $30.51 after settling from above $35 in intraday activity.
  • Inflation came in very hot this morning at the highest YoY levels since 1982, yet markets still rallied.
  • What could have been a major obstacle, the debt ceiling debacle, appears to be coming to an amenable resolution, and the country will once again avoid a technical default—more from Tom Block below.

Despite a substantial and sometimes intimidating Wall of Worry, we believe that we are still heading into a YE rally. See our favorite sectors below in Tom Lee’s note.
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"It is not a case of choosing those [faces] that, to the best of one's judgment, are really the prettiest, nor even those that average opinion genuinely thinks the prettiest. We have reached the third degree where we devote our intelligences to anticipating what average opinion expects the average opinion to be. And there are some, I believe, who practice the fourth, fifth, and higher degrees."
-John Maynard Keynes, General Theory of Employment, Interest and Money, 1936

Inflation rose at the fastest rate since 1982 and markets still ...

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