The major U.S. stock market indexes declined significantly on September 20 on investors’ pessimism surrounding China’s Evergrande Group, which might be on the brink of default. The stock market’s volatility can also be attributed to uncertainty regarding the timing of the Federal Reserve’s tapering activities and the increase in COVID-19 cases.
However, according to the Labor Department, the consumer price index (CPI) in August increased 5.3% from a year earlier and 0.3% from July, less than expected, signaling that inflation may be starting to cool. Furthermore, surprisingly, retail sales rose 0.7% in August despite fears related to the resurgence of the COVID-19 cases.
Against this backdrop, we think it could be wise to bet on these quality mid-cap stocks…
This article originally appeared at StockNews.com.