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Robust earnings have been a driving force behind the market's gains. First quarter earnings contributed to a 5.4% year-over-year growth for the S&P 500 (^GSPC), according to FactSet. To provide insights into the market's momentum as earnings season continues, NYSE Senior Market Strategist Michael Reinking joins Catalysts.
As markets brace for a combination of inflation reports and earnings releases, Reinking notes that this week is also an options expiration week, a dynamic that could potentially heighten volatility. However, he points out that "positioning is more normalized" these days. Notably, with economic data and earnings pointing to growth, Reinking suggests there are "asymmetric risks to the upside from a market perspective."
"I think markets want to see that moderation, because...that's kind of that precursor to seeing that disinflationary process start to play out," Reinking tells Yahoo Finance.
For more expert insight and the latest market action, click here to watch this full episode of Catalysts.
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This post was written by Angel Smith