Week from 8 to 14 March 2021
The Dow Jones Industrial Average jumped 4.07% week-over-week, or 1,282 points, to a closing record of 32,778.64, as the $1.9 trillion COVID-19 relief bill with $1,400 stimulus checks was signed into law on Thursday. Simultaneously, the S&P 500 was up 2.64% at a record 3,943.34, and the Nasdaq Composite rose 3.09%. Even more striking, small cap stocks rebounded strongly (Russell 2000 up 7.32%), bringing their year-to-date performance to +19.14% (i.e. +14.15% return in excess to the S&P 500).
All the S&P sectors finished in positive territory but the biggest decliners over the past three weeks were the winners this time (consumer discretionary: +5.74%, real estate: +5.71%, utilities: +4.41%). By contrast, energy slowed down (+1.08% WTD, WTI down 0.73% as U.S. crude inventories rose 12.79 million barrels last week) but remains the best performer since the beginning of the year (+40.08%), above financials (+3.17% WTD, +17.52% YTD).
European markets followed suit (CAC 40: +4.56%, DAX 30: +4.18%). Asian markets closed mixed (Nikkei 225: +2.96%, Kospi: +0.93%, S&P/ASX 200: +0.83%, Shanghai Composite: -1.40% as the Chinese government confirmed its focus on deleveraging this year).
On the interest rate front, prospects of more public spending and faster economic growth (as evidenced by the University of Michigan Consumer Sentiment Index which rose 6.2 points from 76.8 to 83 in the preliminary March reading) sent the 10-year Treasury yield to a 13-month high (+1.60%, +8bps over the week) while the German Bund on the same maturity was virtually unchanged at -0.31%. Credit markets showed signs of stabilizing after a tough period. Investment grade corporate bond prices fell slightly (-0.05% in Europe compared with -0.31% in the U.S.). High-yield bonds did better (+0.19% in Europe, -0.08% in the U.S.) and emerging debt ended its 3-week losing streak (+0.20% in local currencies).
Elsewhere, Gold rose +1.55% to $1,727/oz while the EUR/USD pair was quite steady at 1.1937 (+0.23%).
Lastly, Bitcoin surged above $59,750 as institutional investments continued to push the most popular crypto to new heights.
Find the full report here: https://www.trackinsight.com/en/weekly-flow-report/2021-03-12/global
Find and compare over 6,000 ETFs with our free tools:
- ETF Screener
- ETF Comparison Tool
- ESG Observatory
