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.

(Click on image to enlarge)

Alternative Futures - S&P 500 - 2021Q1 - Standard Model (m=+1.5 from 22 September 2020) - Snapshot on 26 Mar 2021

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.

Disclaimer: Materials that are published by Political Calculations can provide visitors with free information and insights regarding the incentives created by the laws and policies described. ...

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.