“The market was oversold, and so it got like a stretched rubber band and we had a sharp snapback today,” said Sam Stovall, chief investment strategist at CFRA.
Supply chain shortages and higher raw material costs have been hitting businesses, which have passed the higher costs off to consumers.
Rising inflation has also prompted the Federal Reserve to hasten its withdrawal of aid to the markets and economy and put interest rate increases on the radar for investors in 2022.