The S&P 500 Reaches New High With Lifting Of Government Restrictions On Growth
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.
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Bank stocks also got a boost on Friday after the post-market close Federal Reserve announced 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.
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