Markets Push Higher
by Zach Marsh on Jun 25, 2021
The stock market rebounded nicely this week, with the headline S&P 500 index jumping more than 2.75%. The Russell 2000 also strongly rallied, closing up nearly 5%. Following last week’s Fed induced “freak out” that rates may be rising sometime two years from now, Fed Chair Jerome Powell, eased the market’s concern on Monday reiterating that the Fed will still remain accommodating in the near term.
The long end of the US Treasury bond market saw rates rise, causing a nearly 3% drop in the price of TLT (iShares 20+year US Treasury Bond ETF). Tech shares continued a solid month, as the Nasdaq 100 added over 2%, bringing the month to date return to over 4.7%. Gold pared some of its monthly losses by gaining nearly 1%.
With the Federal Reserve seemingly unwilling to upset equity markets, or uncommitted to restraining rising asset prices, it appears the stock market may continue to trend higher. All this, of course, can change at the drop of a hat as markets are typically unsettled by the unsuspected. That’s about all I have for you today. We both hope you enjoy your weekend and hope that you are able to get out and travel now that much has re-opened.
Thanks for reading,
Zach and Dave
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