April 9th, 2021
Markets kicked the second quarter off on a high note with the S&P 500 index hitting another all-time high on Friday. Growth stocks outpaced value stocks as the 10-year U.S. treasury yield retreated to 1.66%, down from a recent high of 1.75%, and on continued optimism for the U.S. post-Covid economic recovery. Friday’s blockbuster jobs report showed that businesses added new hires at the strongest pace since August 2020. The strong hiring data helped to offset a paradoxical rise in jobless claims reported earlier in the week. The services industry reported strong momentum in March with the ISM Services index rallying to an all-time high of 63.7. The report follows last week’s record-setting ISM report on manufacturing which surged to its highest level in more than 37 years. In overseas news, China’s services sector showed that its domestic economy is beginning to gather steam, helped by business optimism and increased hiring. The week’s reports continued to paint a story of mounting momentum that lifted the S&P 500 2.71%.
Blockbuster Jobs Report Offsets Rise in Jobless Claims
Services and Manufacturing Sectors See Spring Bounce
China’s Services Sector Rises on Improved Business and Consumer Optimism
Traders will be watching consumer prices like a hawk for signs of growing inflationary pressures. Retail sales figures will also be on the radar as the latest round of stimulus checks hit consumers’ pockets in March. Overseas, China will be among the first of the world’s major economies to release Q1 2021 GDP results.