|AUTHOR: Jason J. Roque, MS, CFP®, APMA®, AWMA® |
TITLE: Investment Adviser Rep – CCO
TAGS: S&P 500, Stagflation, Debt Ceiling, Jobs
S&P 500 crossed 4,000 points last Thursday. The number is insignificant, but does the growth have meaning?
The trading week opened consistently in the red. Led mainly by a margin call on a large family office for $20B. The event calls to light a hole in the communication between prime brokerages regarding client account holdings.
Markets hovered mildly in the red all day. They ended there with very little change. House prices rose an exceptional 12% over the year ending January. Also, CB consumer confidence rose to 109.7, the highest level since March of last year. This data was not enough to get the markets off the mat.
The S&P 500 managed to rise 0.5% on Wednesday. Aided by ADP payroll data that showed slower than expected job adds. They were substantial, just not as great as expected. This eased some inflationary concerns. Additionally, details around an infrastructure package may have had an impact on shares.
A growth rally ensued on Thursday (this week’s Friday), as interest rates softened. This strength was very encouraging as we move into the weekend with investors wanting to be long the market. Even with growth leadership, the S&P 500 managed to close above 4,000 points for the first time ever.
The buy trend to close the week was more meaningful than usual. While the markets were closed on Friday, the government was not. They still released the all-important Jobs report on Friday. A report that drives trading every month upon its release. The buy trend indicated investors thought it was going to be good, but not that good, fending off inflation concerns. This should send a buy signal into the start of this week as well.
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