Friends
It was a good day for the older established growth companies as well as the very defensive area of the market. The economically sensitive sectors saw some selling today with energy, industrials and financials all feeling the pressure. There has been a fascinating amount of rotation so far in 2021 and that looks like it will continue into the spring and summer as investors attempt to gauge the potential impacts and scope of economies reopening.
By the close, the Dow Jones Industrial Average was down 127 points to finish the day at 32,825. The S&P 500 was down 6 points to close at 3,962. The Nasdaq Composite Index was up 11 points to close at 13,471. Gold was up $1 to trade at $1,729 per ounce, while oil was down $.67 to trade at $64.72 per barrel WTI.
Bonds were relatively quiet today, but the consensus is that yields will move higher throughout the year. The consensus is often quite wrong but maybe this year will be different. The question will be just how stocks handle higher interest rates. So far, higher rates have effected certain growth areas, but in general have not been bad for stocks. We’ll see if that continues. In the meantime, we’ll hear from the Fed Chair tomorrow. Stay tuned.
Have a nice evening everyone.
