Factors that include high inflation, supply chain disruptions, and rising COVID-19 cases convinced investors and analysts that the 2021 fourth quarter would end on a low note. However, the quarter registered strong U.S. GDP growth. The economy achieved 5.7% growth last year, its strongest growth since 1984.
While the stock market remains volatile on concerns over high inflation and the Fed’s plans to raise rates aggressively this year, impressive fourth-quarter corporate earnings may cushion the benchmark indexes. According to FactSet, the S&P 500 is reporting earnings growth of more than 25% for the fourth straight quarter.
