US Equity Markets saw broad-based gains last week thanks to continued strong economic data and a potential further boost to the US economy from President Biden's infrastructure package proposed last week. The S&P 500 hit an all-time high to close above 4000 for the first time in history, up 1.1% for the week and now up 7.0% for the year. The Nasdaq outperformed, up 2.6% for the week, to bring its gains for the year to 4.6%, while the Russell 2000 (small cap stocks) rose 1.5% for the week and is now up 14.1% for the year.
Global Equity Markets were slightly positive last week, as strong economic data out of Europe offset some disappointing economic data out of Asia. On balance, Developed Markets eked out a 0.2% gain for the week and are now up 4.0% for the year. Emerging Markets posted stronger returns, up 2.1% for the week, to bring its gains for the year to 3.4%.
US Economic Data were downright robust last week. Payroll gains for March totaled a stunning 916K, significantly better than expectations, while the Unemployment Rate dropped to 6.0%. Consumer Confidence for March rose to its highest level since the pandemic, while measures of manufacturing activity surged to levels not seen since the mid-1980's.
Of Interest to Us
While investors have been understandably enthusiastic about the near-term economic impact of the recent $1.9 trillion fiscal stimulus package that passed in March, President Biden's proposed $2.3 trillion infrastructure package comes with early estimates of $3 trillion in tax increases. If that is indeed the case, it would likely result in a fiscal drag on the economy in 2022 of around $2 trillion compared to 2021.
Market Data
for the week ending 4/2/2021
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