The S&P 500 Index returned 1.58% after a choppy week of trading. The index pushed higher on Monday, but equities reversed direction the following day as concerns grew regarding the economic recovery with more European countries increasing their COVID-19 lockdown efforts. Crude oil prices declined 6.16% on Tuesday as they were also affected by the lockdown on concerns over future fuel demands. Crude oil rebounded 5.92% as potential supply disruptions arose due to a large container ship blocking the Suez Canal, an important supply route for crude. Equities were positive Thursday as Federal Reserve Chairman Jerome Powell said they would continue to aid the economy and gradually pull back the monetary support once the economy has recovered.
Treasury yields dropped moderately over the course of the week on renewed lockdown fears in Europe and testimony from the Federal Reserve. Treasury yields began the week dropping significantly on Monday and Tuesday, as Fed Chairman Powell confirmed the Fed’s commitment to loose monetary policy, insisting that the he does not believe that a surge in inflation this year will be persistent or large. Powell believes that the Federal Reserve has the tools necessary to deal with higher inflation.
