US Equity Markets hit fresh record highs last week despite the unrest in Washington, as investors increasingly focus on the likelihood of additional fiscal stimulus following the Democrats winning the Senate. The markets continued their recent upward trends, with S&P 500 up 1.8% for the week. The Nasdaq outperformed for the week, up 2.4%, while the Russell 2000 (small cap stocks) continued its recent surge, up another 5.9% for the week.
Global Equity Markets followed the US lead, rising on hopes that additional stimulus in the US will add to the healthy rebound in China to drive global economic growth. Developed Markets began the year up 3.2% for the week. Emerging Markets rallied 4.8% for the week, helped by an 8.7% rise in oil prices.
US Interest Rates broke out to the upside last week on rising hopes of an economic recovery. The yield on the US 10-Year Treasury closed at 1.11% vs. 0.92% the prior week. This level of interest rates is the highest level for the US 10-Year Treasury since March of 2020.
Of Interest to Us
The US posted its first month of net job losses in December since the pandemic-driven losses back in April 2020. For the month of December, Nonfarm Payrolls declined 140K, much worse than expectations of job gains of over 100K, while the Unemployment Rate held steady at 6.7%. The weakness in the job market will likely increase the probability of additional fiscal stimulus out of Washington.
Market Data
for the week ending 1/8/2021
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