Has the US Market Peaked?

The S&P500 dropped as investors digested inflation figures in May. Is it a blip, or has the US reached peak recovery? 

Cherry Reynard 24 May, 2021 | 9:03AM
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US flag and wall street sign

The sliding Bitcoin price has an "end of the party" feel to it. After a period when the US economy has charged forward, SPACs have been raising cash, alternative currencies have soared and unprofitable technology companies have seen vast share price expansion, the weakness in the world’s most high-profile crypto might serve as a warning: the US has reached peak recovery.

Certainly, the markets appear to think so. The S&P 500 dropped 1.4% in just three days as it has digested the 4.2% inflation print in mid-May. Former US treasury secretary Larry Summers has vocally condemned the Federal Reserve’s "looser for longer" approach, saying the central bank is storing up trouble in allowing asset bubbles and inflation to take hold.

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About Author

Cherry Reynard

Cherry Reynard  is a financial journalist writing for Morningstar.co.uk.