The Stock Market Correction

The stock market corrected in the last 1 week. NASDAQ, a Technology heavy index, saw its peak in April. It has seen corrected by 7.5%. With NASDAQ as an indicator of the stock market, why did it correct? What is happening? Source: Google Finance

Rising inflation

Inflation has gone up by 4.2% year-on-year, as seen in the inflation data released on May 12.  With it being the sharpest increase since 2008, why is this happening? One of the reasons is because the inflation was low in 2020 due to it being a year of crisis. Hence, we are already starting with a low base before the rise. But there are other reasons too.

Supply not keeping up with demand

As more people get the vaccination and it starts taking effect, demand for goods will start to increase as people will start going out more often to spend. However, supply will not be able to catch up immediately....