Amid Strong Crosscurrents, Stocks Sank 2.5% This Past Week
Published Friday, February 26, 2021 at: 8:10 PM EST
With bond yields rising to pre-Covid levels, it was no big surprise when stocks weakened this past week.
While stock market volatility is unpredictable, it is understandable in this time of strong crosscurrents.
The index of U.S. Leading Economic Indicators rose again in January, while disposable income and savings spiked on stimulus payments from the government to consumers. However, the yield on a 10-year U.S. Treasury bond continued rising and resulted in a one-week loss in the Standard Poor’s 500 stock index of 2.47%.
Rising bond yields, the growing threat of inflation, federal aid packages in the trillions, and the pandemic are strong crosscurrents whipping stock prices. Volatility should be expected by investors navigating for the long-term.
The Standard & Poor’s 500 stock index closed Friday at 3,811.15. The index lost -0.48% from Thursday and is down -2.47% from last week. Stock prices are up +52.03% from the March 23rd bear market low.
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This article was written by a professional financial journalist for Forbes Financial Planning, Inc and is not intended as legal or investment advice.