A Snapshot of the Market for the Week Ended March 5, 2021:
Bonds became the main event. The market closed out a wild and volatile trading week that turned into a boxing match between the monetary authorities and bond vigilantes. In the green corner, the monetary authorities believed that they were doing enough to bring the economy to full employment and saw no reasons why they should come to the rescue of investors who are invested in growth stocks. In the red corner, the bond vigilantes believed that the Fed were not doing enough to calm the bond market and felt that it should implement interest rate controls. The green and red trunks won rounds. The broad market registered strong gains on Monday and Friday bookending strong pressure in the middle of the week. The S&P 500 was up 31 points or 0.8% ending at 3842.
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By Hubert Marleau
By Hubert Marleau