Amid Strong Crosscurrents, Stocks Sank 2.5% This Past Week
Published Friday, February 26, 2021 at: 8:10 PM EST
With bond yields rising to pre-Covid levels, it was no big surprise when stocks weakened this past week.
While stock market volatility is unpredictable, it is understandable in this time of strong crosscurrents.
The index of U.S. Leading Economic Indicators rose again in January, while disposable income and savings spiked on stimulus payments from the government to consumers. However, the yield on a 10-year U.S. Treasury bond continued rising and resulted in a one-week loss in the Standard Poor’s 500 stock index of 2.47%.
Rising bond yields, the growing threat of inflation, federal aid packages in the trillions, and the pandemic are strong crosscurrents whipping stock prices. Volatility should be expected by investors navigating for the long-term.
The Standard & Poor’s 500 stock index closed Friday at 3,811.15. The index lost -0.48% from Thursday and is down -2.47% from last week. Stock prices are up +52.03% from the March 23rd bear market low.
Nothing contained herein is to be considered a solicitation, research material, an investment recommendation, or advice of any kind, and it is subject to change without notice. Any investments or strategies referenced herein do not take into account the investment objectives, financial situation or particular needs of any specific person. Product suitability must be independently determined for each individual investor. Tax advice always depends on your particular personal situation and preferences. You should consult the appropriate financial professional regarding your specific circumstances.
The material represents an assessment of financial, economic and tax law at a specific point in time and is not intended to be a forecast of future events or a guarantee of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete, and is not intended to be used as a primary basis for investment decisions.
This article was written by a professional financial journalist for Advisor Products and is not intended as legal or investment advice.
This article was written by a professional financial journalist for McCarthy Asset Management, Inc and is not intended as legal or investment advice.