S&P 500 Reaches New High, Dampened By Rising Inflation
You would think the U.S. stock market would be excited by the $1.9 trillion stimulus the Democrat-dominated U.S. government just passed into law on Friday, 12 March 2021.
But the specter of higher inflation, which portends rising interest rates, robbed the market of much of upward momentum it could otherwise have had. Despite that headwind, the S&P 500 (Index: SPX) still managed to climb enough out of the red during most of the trading day to close at a record high value of 3,943.34 on Friday, 12 March 2021.
That puts the level of the S&P 500 very near the middle of the red zone forecast range on the alternative futures chart.
The level of the S&P 500 is consistent with investors focusing most of their forward-looking attention on 2021-Q2.
The news of the week was mixed overall, with rising inflation concerns a common theme in many corners of the world affecting investor expectations for the future.
Monday, 8 March 2021
- Daily signs and portents for the U.S. economy:
- Bigger trouble developing in China, Latin America:
- Positive developments in the Eurozone, China:
- ECB minions say they'll do one thing, but do another:
- Nasdaq hits correction, Dow advances as stimulus bill nears the finish line
Tuesday, 9 March 2021
- Signs and portents for the U.S. economy:
- Fed minions are too white, want to select others who think just like they do:
- Bigger trouble developing in Eurozone, Brazil:
- Nasdaq surges as tech stocks roar back
Wednesday, 10 March 2021
- Signs and portents for the U.S. economy:
- ECB minions greasing up printing presses:
- Dow hits record in stock rally as inflation fears recede
Thursday, 11 March 2021
- Signs and portents for the U.S. economy:
- ECB minions launch more QE money printing, suddenly develop Superman-like inflation vision power:
- S&P 500, Dow end at record highs after upbeat jobless claims data
Friday, 12 March 2021
- Signs and portents for the U.S. economy:
- Bigger inflation developing in India:
- Positive signs or really low Eurozone expectations?
- ECB minions confirm loosey-goosey bond-buying policies, don't see Eurozone recovery until fall, fear inflation caused by Biden's COVID stimulus:
- U.S. stocks close mixed as Dow notches fifth straight record high
Meanwhile, Barry Ritholtz picked out all the positives and negatives he could find in the past week's markets and economics news over at The Big Picture, where the Biden COVID stimulus shows up on the negative side of the ledger.
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