May 3 - 7, 2021 Recap
Weak Payrolls Bolster Easy Money Views
The broad market S&P 500 Index finished at its 26th all-time high this year amid bullish recovery optimism that was bolstered Friday by an unexpectedly weak April payrolls report. Just 266,000 new jobs were added last month, missing projections for upwards of 1 million. The differential represents the largest deviation from consensus estimates on record. Wall Street embraced a view that the huge miss will ease inflation fears and help usher in President Biden’s $6 trillion economic plans and thus pressure the Fed to keep its low interest and massive bond buying policies in place longer than previously believed.
For the Week...
The S&P 500 rose 1.26% and the Dow Industrials surged 2.67% to also end a record-setting week, within just 0.6% of reaching 35,000. The tech-heavy Nasdaq Composite declined 1.48%, with week-ending gains trimming deeper early-week losses.
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The Weekly Recap is published by Cetera Investment Management LLC, an SEC registered adviser owned by Cetera Financial Group. Cetera Investment Management provides market perspectives, portfolio guidance, model management, and other investment advice to its affiliated broker-dealers, dually registered broker-dealers and registered investment advisers.
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