Week Ending February 19 Financial Markets Update

The S&P 500 traded lower on all four days during the holiday-shortened week as bond-proxies and information technology stocks moved lower on higher treasury yields. While the broad market moved lower, more cyclical exposed areas of the market posted strong gains including energy, financials, and small caps. Economic datapoints remained strong with PMIs showing strong expansion and retail sales far exceeding even the most optimistic forecasts. Clean energy shares were sharply lower during the week as renewables were partially to blame for the Texas blackout. Key on investors’ minds for the week ahead will be Jerome Powell’s report in front of congress on Tuesday and a likely first vote on Joe Biden’s $1.9 trillion stimulus package. 

In other news we found a podcast featured in the Wall Street Journal on Thursday the 18th insightful and wanted to share it with you. It helps to shed light on the ‘free’ trading structure and payment for order flow as it relates to the Robinhood trading app platform. Link below:

Yields continued to rise as bond prices are falling amid rising expectations for increased inflationary pressure. The curve steepened with longer-dated bonds commanding ever higher yields as investors are favoring short-dated bonds for defensive investments as a result of inflation concerns.





The interpretations and organizations of these ideas are the confidential thoughts of 1st & Main Investment Advisors and do not represent the opinions of BFCFSDifferent types of investments involve varying degrees of risk including market fluctuation and possible loss of principal value. There can be no assurance that any specific investment strategy will be profitable. *some content provided by First Trust Portfolios L.P.  Member SIPC and FINR
**The linked information being made available is strictly a courtesy of our company. When you use the links to any of the websites provided here, you are leaving the company site. Our company makes no representation as to the completeness or accuracy of information provided at these sites. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of the third-party technologies, sites, information and programs made available through the links on this site. When you access one of these sites, you assume total responsibility and risk for your use of the sites to which you are linking.


Latest News