February 1 - 5, 2021 Recap
Strongest Week Since November
The S&P 500 rebounded by over 4.5% last week, more than erasing its 3.3% prior week loss after news that U.S. Congress is moving towards more fiscal stimulus, an outcome that Treasury Secretary Janet Yellen has now embraced. Equity markets expect President Biden will win passage for the majority of his $1.9T package. Impressively, the S&P 500 and Dow advanced all five days last week, and the Nasdaq 100 and S&P 500 both reached fresh all-time highs on Friday. Nearly all 126 S&P 500 sub-industries are trading above their 200-day moving averages, a first since May 2013.
For the week, the S&P 500 advanced 4.67%, the Dow Industrials rallied 3.89% (up 1,165 points), and the tech-heavy Nasdaq Composite gained 6.04%. The small cap-focused Russell 2000 performed best last week, surging 7.72%. The Cboe VIX volatility index ended the week at just under 21, its lowest closing level since the start of December and fell the most in a week since early November.
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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