The S&P 500 (Index: SPX) closed at a new record high of 3,974.54 on the trading week ending 26 March 2021. The new highs were achieved as growth looks to be strong with the lifting of state and local government lockdown restrictions, as more states open COVID vaccine eligibility to all adults.
During the week however, stock prices traded near the lower end of the redzone forecast range, as ongoing volatility prompted by rising interest rates in the bond market led to the continuation of tech stock selloffs, as bond investors acted to minimize their losses. Stock prices gained on Friday as key inflation data came in lower than expected, lowering bond yields and boosting tech stock prices.
Bank stocks also got a boost on Friday after the post-market close Federal Reserve announcement it would lift restrictions on dividends for most banks after its June stress test, which boosted bank stocks. All in all, it's pretty amazing how something like lifting restrictions imposed by government entities improves the expectations for growth in the future.
Other stuff also happened during the week. Here are the market moving headlines we tracked:
- Monday, 22 March 2021
- Daily signs and portents for the U.S. economy:
- Oil steadies after sell-off but European lockdowns hurt outlook for demand recovery
- Cold weather, tight supply depress U.S. home sales
- Biden infrastructure, jobs spending push could hit $4 trillion: source
- Fed minions take all sides in forecasting U.S. economy, talk shop:
- Analysis: Fed hopes for inflation psych-out, stable expectations, as prices rise
- Fed Chair Powell: U.S. economy looks to be strengthening
- Fed's Barkin says economy still short of bar for QE taper
- Fed's Bowman says small firm failures may increase, cites state virus restrictions
- Fed's Powell: Would pursue digital currency only with Congressional support
- Fed made $275 million from emergency facilities in 2020
- Fed's Quarles warns banks face intense regulatory scrutiny in move away from Libor
- Bigger trouble and stimulus developing in the Eurozone:
- German economy is slumping on anti-virus curbs, Bundesbank says
- Germany hikes pandemic-related debt plans to more than 450 billion euros: document
- ECB minions worry about effect of Eurozone botching COVID vaccines, start money printing to fund more Eurozone debt:
- ECB's Lagarde warns of uncertainty about speed of vaccination
- ECB ups money-printing by half to convince bond market sceptics
- After hinting they were going to stop, BOJ minions keep buying ETFs:
- BOJ Gov Kuroda says no plan to stop buying ETFs or sell them
- BOJ buys stock ETFs as usual after policy change, but changes may lie ahead
- Wall Street closes up on tech rebound; Tesla gains
- Tuesday, 23 March 2021
- Signs and portents for the U.S. economy:
- Oil tumbles 4% on concerns over Europe curbs, rollouts
- Exclusive: 'Busy on other fronts' - White House without Trump stays quiet on OPEC
- U.S. new home sales plunge amid harsh weather
- Fed minions predict rate hikes next year, confirm Biden stimulus is causing highest inflation in years, really want to focus on climate change:
- Fed's Kaplan says he is among policymakers expecting rate hike in 2022
- Bostic says inflation signal will be clearer after stimulus fades
- Fed's Bullard sees inflation at 2.5% this year, easing only slightly in 2022
- Fed's Brainard: Central bank 'resolute' in using outcomes to shape policy
- Fed to establish new climate risk panel, Brainard says
- Bigger trouble developing in the Eurozone, Brazil:
- Germany's Merkel banks on Easter circuit-breaker to combat 'new pandemic'
- Brazil consumer confidence posts third biggest fall as COVID-19 spreads
- ECB minions standing by, BOJ minions looking to hire more women:
- Europe facing difficult quarter but ECB will do its part: ECB's Lane
- Japan's male-dominated central bank sets new diversity target
- Stocks slide as stimulus, infrastructure costs spook investors
- Wednesday, 24 March 2021
- Signs and portents for the U.S. economy:
- U.S. factory activity picks up in March; cost pressures building - IHS Markit
- Weather slams U.S. business equipment spending; supply disruptions weigh
- Oil up more than $3/bbl after Suez Canal ship grounding
- Fed minion predicts rate hikes in two years, two others say no schedule for hikes:
- Bostic expects Fed to lift rates in 2023 - WSJ
- NY Fed's Williams says time frame for raising rates will be driven by economy
- Fed's Daly says expect a 'dose of patience' on interest rates
- Bigger trouble, stimulus developing in the Eurozone:
- Euro zone business activity rebounded in March but renewed lockdowns to hurt
- German government backs new budget as Scholz signals spending spree
- Bigger inflation developing in Mexico:
- S&P 500 slips as tech stocks pull market lower
- Thursday, 25 March 2021
- Signs and portents for the U.S. economy:
- U.S. weekly jobless claims drop to one-year low in boost to economy
- Oil prices drop 4% as new lockdowns undermine hopes for economic recovery
- Fed minions on board with high inflation in 2021, will keep juicing the economy:
- Fed to support economy until recovery 'well and truly done,' Clarida says
- Fed's Barkin says inflation to fall back next year
- Fed's Evans sees first rate hike in 2024, inflation will be the test
- ECB minion has amazing realization regarding COVID vaccines:
- Stocks rebound in late-day rally on Wall Street
- Friday, 26 March 2021
- Daily signs and portents for the U.S. economy:
- Fed minions on board with doing nothing:
- Fed's Harker says he wants to "hold steady" until country gets through pandemic
- Fed policymakers see cautionary tale in Europe's inflation fight
- Bigger trouble developing in global trade:
- Suez Canal blockage adds strain to global supply chains
- Japan Feb Factory output to fall on global chip shortage: Reuters poll
- German manufacturing propped up by China, U.S. demand despite Eurozone lockdown woes:
- Wall Street rallies on strong recovery hopes
Elsewhere, Barry Ritholtz's lists the positives and negatives he found in the past week's markets and economics news.
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