Although market turbulence continued last week on speculation surrounding interest rate hikes and rising inflation, the U.S. stock market is expected to perform strongly in the coming months. While only a few companies have released their fourth-quarter earnings reports so far, a FactSet report estimates the earnings growth rate for S&P 500 members to be 21.7% for the quarter.
Furthermore, the labor market is expected to hit full employment this year. The unemployment rate decreased to 3.9% at year’s end from 6.3% in January 2021.
