04|27|2021

Driving Gains | April 23, 2021

AUTHOR: Jason J. Roque, CFP®, APMA® TITLE:       Investment Adviser Rep – CCO TAGS:   S&P 500,

Markets were flat for the week. Capital Gains were driving trade late in the week, what does it mean going forward?

Monday

With a light day in the way of economic data, the inflation focal point did not fade. Markets were lower, led by the NASDAQ and long dated interest rates moved north.

Tuesday

In another day of light data, the markets closed lower. The NASDAQ again led the way lower. In a contrary step interest rates were actually lower on the day. The move became less about interest rates and perhaps some earnings misses.

Wednesday

In a course reversal markets rose broadly on Wednesday. Again, NASDAQ led the way, rising 1.19%. Rates were little changed on the day as focus remained on the current earnings season.

Thursday

Markets were little changed for most of the day. However, it was announced that capital gains would be a target for future reform. This would put a dent into markets as there would be less incentive to invest.

Friday

Markets rebounded Friday as Thursday viewed as an over-reaction to the proposal. This is good news, signaling a desire by investors to be long the market heading into the weekend news cycle.

Conclusion

Markets were moved by a capital gains proposal last week. This announcement is likely to be a starting point of negotiations. Current market conditions should not be impacted by this information. Expect earnings season to dominate markets for the coming week.

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