The S&P 500 Index returned 1.97% last week, climbing to an all-time closing high on Friday of 4,411.79. The Dow Jones Industrial Average also set a closing record on Friday, closing over 35,000 for the first time. Equity markets had a rough start to the week on Monday as the S&P 500 Index declined 1.59%, its worst trading day since May 12. Rising COVID-19 cases globally due to the Delta variant increased concerns of future economic growth as energy, financials, and materials were hit the hardest.
Treasury yields were down moderately among medium term bonds but otherwise unchanged as investors weighed the impact of rising COVID-19 cases on the economy. On Monday, yields dropped significantly as the 10-year yield hit its lowest level since February as concern over the Delta variant and the effect it would have on reopening economies caused investors to seek the perceived safety of Treasurys.
