The S&P 500 moved higher on the week on a resurgence in big technology shares despite fears the new virus strain could be deadlier, and Democrats may need to slim down the next round of stimulus. Economic data points continued to surprise to the upside with the PMI, housing starts and existing home sales all coming in above consensus. In addition to strengthening economic figures, earnings season is off to a strong start.
US Treasury bond yields were mixed last week. The shorter-dated yields pulled back while the longer-end of the yield curve gained over the course of the holiday-shortened week. The long end of the yield curve steepened on Tuesday in reaction to the Senate’s confirmation hearing of former Federal Reserve Chairman Janet Yellen for Treasury Secretary. Yellen mentioned she was open to the idea of adding a 50-year Treasury bond, something the Trump administration considered. Treasury yields were mostly down on Wednesday as Joe Biden was sworn in the as the 46th President of the United States, making further fiscal stimulus all but inevitable. The week wrapped up with the release of data supporting the continued strength of the housing market.
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