Here are today’s market moves:
S&P 500 down 0.057% to 3,932.59
Dow Jones up 0.20% to 31,522.75
Nasdaq down 0.34% to 14,047.50
Gold: $1,794
Bitcoin: $48,574
US10Y: 1.312%
What Happened?
The Dow Jones closed at a record on Tuesday, driven by investor optimism for more fiscal stimulus and hopes for a strong vaccine rollout. The S&P 500 and tech-heavy Nasdaq, meanwhile, edged down slighly from Friday’s record closes.
U.S. bond yields soared to the highest in a year, while U.S. stocks climbed to records as enthusiasm over the economic recovery continued to spread through markets.
The yield on the 10-year U.S. Treasury note rose to 1.312% from 1.199% on Friday.
Democrats are preparing to put together a legislative version of President Biden’s $1.9 trillion covid relief proposal.
Investor sentiment also has been lifted by the rollout of vaccines and a notable drop in Covid-19 cases around the world.
Investors are riding a wave of speculative euphoria from penny stocks to cryptocurrency amid abundant policy support.
On Friday, the S&P 500 traded at 22.50 times its projected earnings over the next 12 months, above its five-year average of 17.90
Bitcoin surpassed $50,000 for the first time on Tuesday.
Oil prices rose to above $60 a barrel for the first time in a year after freezing temperatures crippled the Texas power system and disrupted crude production.
What Else?
This Week
Monday: Presidents Day – Markets closed.
Tuesday: Earnings expected from CVS, Groupon, and Palantir.
Wednesday: Earnings expected from Shopify and Twilio; U.S. retail sales figures released; FOMC minutes from the January meeting are due.
Thursday: Earnings expected from Dropbox, Nestle, Roku, and Walmart; Weekly jobless claims.
Friday: Earnings expected from John Deere.