Our Weekly Podcast and Market Overview from Quilter Cheviot
Wall Street Rollercoaster
By Alan McIntosh, Chief Investment Strategist
“All eyes were on the US last week as anticipated the Senate’s decision on President Joe Biden’s latest stimulus package along with the non-farm employment figures. Starting with the stimulus package, the Senate approved the $1.9 trillion Covid-19 relief package on Saturday which includes a $1,400 stimulus check for most Americans as well as a $350 billion aid for state and local governments. Before this can be actioned however, the House shall vote on the legislation this week but with a Democratic majority, this is expected to be approved as well. US equities were already having a rocky week in the build up to this vote and given the Senate’s decision being announced over the weekend, there could be some reactive responses in the early stages of this week.
The non-farm payroll figures were released on Friday showing unemployment had fallen to 6.2% as 379,000 jobs were added to the US economy, greater than expected. Despite these figures being positive and promising for the economy, bond yields did rise resulting in equities taking a hit. US equities suffered a downward trend for most of the week before a rollercoaster on Friday resulted in the market finishing up 0.8% for the week.
Elsewhere, the FTSE 100 had a strong week climbing 2.3%, recovering the losses and some from the week prior. Energy and cyclicals have played a key role in the UK’s performance in tandem with the pound having a strong year-to-date as well. The dollar has since regained some value against the pound which has meant global performances have also looked positive for the past week.”
Read the original article here… Quilter Weekly Comment – Wall Street Rollercoaster