MARKET VIEW
Weekly changes: SPX500 +2.28%
The SPX500 closed above 4,100 due to stocks rising to another record as investors' concern over inflation waned and began focusing on prospects for an economic rebound. Another factor was the market weighing in on the U.S. Federal Reserve's vow to stay the course with its dovish monetary policy.
Minutes from the FOMC's last policy meeting showed board members felt the economy was still short of their target and repeated their accommodative monetary position.
KEY POINTS
U.S. companies will provide quarterly results a year after the coronavirus pandemic crippled the economy. The results will start next week, beginning with major banks. SPX500 earnings are expected to have risen 25% in the first quarter from a year ago, according to IBES data from Refinitiv. That would be the biggest quarterly gain since 2018.
The prospects of a return to full employment raise questions about whether the Fed can stick to its pledge to keep low-interest rates through 2023.
Most traders are still bullish this year with the stimulus. The Fed is committed to being dovish with the economy reopening due to vaccinations and overall corporate earnings rising.
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