Mid-Week Market Minute 3.10.21

Stocks in the U.S. staged an impressive rally this week as tech shares bounced back from their recent sell-off. Fiscal stimulus remained at the forefront this week where the House of Representatives is largely expected to pass the latest $1.9 trillion relief package. The stimulus bill includes $410 billion in checks paid directly to consumers, $246 billion in supplemental unemployment and another $146 billion in tax credits. If things go as anticipated, President Biden could sign the finalized bill as early as this weekend. 

Following a relentless rally in commodities prices to start the new year, oil finally took a breather this week with a barrel of WTI Crude Oil trading modestly lower at around $63 per barrel. On the data front, inflation pressures remained muted as core CPI rose by 0.1% month-over-month, a tenth of percent below expectations. NFIB’s measure of small business optimism improved by less than anticipated for the month of February. In bonds, the widely watched
10-year Treasury auction of $38 billion on Wednesday was met with adequate demand, easing concerns among investors that the country’s growing debt burden would be too much to bear. Following the auction, the yield on the 10-year Treasury note traded lower for the week, around 1.51%.



Source: GSAM, CNBC, JPM, Bloomberg, FactorInvestor


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