Jul 21, 2021
Equity markets bounced back strongly on Tuesday as investors shrugged off the looming impact of the COVID-19 Delta variant. The rising number of cases has sparked concern about economic shutdowns that could further impact an already over-stressed system. An emerging theme of the second-quarter earnings season is the fact revenues are being impacted not only by rising inflation but by the lack of availability of raw materials and shipping.
If these situations aren't corrected soon, the economic outlook for the second half of the year will become meaningless and that's not good for stock prices. Looking at the charts, it appears as if the major indices are confirming the uptrend, the question now is if the market will follow through on Wednesday and move up to set a new all-time high.