After very recent stock market all time highs, the Dow moved back up again. S&P 500 followed suit after its retreat due to recent bond yield gains
Dow closed up 600 points at: 31535 with intraday movement seeing over a 700 point rise. The S&P 500 closed up at: 3902, up 91 points on the day.
Stocks climbed as confidence returned to markets, with investors shaking off concern about the impacts of higher Treasury yields.
Longer term dated bonds continued their selloff even as ‘medium’ term maturities found support, with traders manoeuvring themselves for how the Federal Reserve might respond to the recent events.
Equities quickly rebound
Investors quickly poured back into risk assets as stocks rebounded following a rout that was triggered by concern of more massive stimulus and as vaccines continued to make progress. This left some areas of the economy at risk of likely becoming over cooked.
Australia calmed global market worries Monday through with bond purchase initiative, will other central banks take similar action too? The Fed didn’t seem unduly worried..?
At the moment it does seem equity buying risk is back on.
Events to watch this week
- UK budget Wednesday.
- U.S. Federal Reserve beige book due Wednesday.
- OPEC+ meeting Thursday.
- U.S. factory orders Thursday.
- Initial jobless claims data Thursday.
- U.S. durable goods orders due Thursday.
- U.S. employment data due Friday will provide an update on the direction of the nation’s jobs recovery.
Dow Jones Industrial Average all time high
Dow all time high: 31962 reached on 24th February 2021 – with intraday high moving above 32000