Winthrop Partners Market and Economic Update 8-30-21

The Markets (as of market close August 27, 2021)

The S&P 500 and the Nasdaq recorded multiple record highs last week. Each of the benchmark indexes listed here posted solid gains, led by the small caps of the Russell 2000, which climbed more than 5.0%. Following the conclusion of the Federal Reserve’s much-anticipated Jackson Hole symposium, Fed Chair Jerome Powell reiterated the message that tapering bond purchases would likely begin this year, while interest rates would remain in place for some time. The market sectors generally advanced, with energy climbing 7.4% and financials adding 3.5%. Ten-year Treasury yields rose 5 basis points to 1.31%. Crude oil prices rebounded from the prior week’s dip, rising over 10.0% to $68.72 per barrel. The dollar slid against a basket of currencies, while gold prices advanced for the second consecutive week.

Wall Street rallied to open the week last Monday, as sentiment was bolstered by the Food and Drug Administration approval of the Pfizer COVID-19 vaccine. The Nasdaq closed at a record high after advancing 1.6%. The Russell 2000 climbed 1.9%, the Global Dow rose 1.2%, the S&P 500 gained 0.9%, and the Dow added 0.6%. Energy led the market sectors as growing demand sent crude oil prices up 5.3% to $65.46 per barrel. Treasury yields and the dollar slipped.

Stocks continued to push higher last Tuesday. The S&P 500 reached its 50th record high this year, while the Nasdaq finished above the 15,000 mark for the first time in its history. The Russell 2000 advanced 1.0%, the Global Dow climbed 0.7%, and the Dow inched ahead 0.1%. The energy sector jumped 1.6% to lead the market sectors. Ten-year Treasury yields closed at 1.29%, up 4 basis points from the previous day’s figure. Crude oil prices rose to $67.70 per barrel, while the dollar dipped lower.

Wall Street closed higher for the third consecutive session last Wednesday as the Nasdaq and the S&P 500 reached fresh records. Once again, the Russell 2000 led the market indexes after gaining 0.5%, followed by the Global Dow, the S&P 500, the Nasdaq, and the Dow. The yield on 10-year Treasuries added 5 basis points to reach 1.34%, crude oil prices rose higher, while the dollar dipped lower. Financials, energy, and industrials led the market sectors, which were otherwise mixed.

Stocks reversed course last Thursday with the S&P 500 ending a streak of five straight sessions of gains. Concerns about the attacks in Afghanistan may have prompted the market sell-off. In addition, investors awaited the start of the Federal Reserve’s Jackson Hole symposium, with the expectation that it might shed more light on the time line for the Fed’s tapering of the pandemic-related asset purchase program. The Russell 2000, which had been soaring, lost 1.1%, followed by the Nasdaq, the S&P 500, and the Global Dow, which lost 0.6%. The Dow slipped 0.5%. Treasury yields were unchanged from the day before, crude oil prices fell, while the dollar gained. Each of the market sectors fell, with energy declining 1.5%.

Equities closed higher last Friday with the S&P 500 and the Nasdaq reaching record highs. Treasury yields and the dollar fell, while crude oil prices advanced. Several of the market sectors posted gains, led by energy (2.6%) and communication services (1.6%).

The national average retail price for regular gasoline was $3.145 per gallon on August 23, $0.029 per gallon less than the prior week’s price but $0.963 higher than a year ago. Gasoline production increased during the week ended August 20, averaging 10.2 million barrels per day. U.S. crude oil refinery inputs averaged 16.1 million barrels per day during the week ended August 20; this was 193,000 barrels per day less than the previous week’s average. For the week ended August 20, refineries operated at 92.4% of their operable capacity, up from the prior week’s level of 92.2%. For entire article click here:Winthrop Partners Market and Economic Update 8-30-21