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- Better-than-expected corporate profits and economic reports countered fears that price pressures and supply-chain snarls would stifle growth.
- In the S&P 500, all of the major groups advanced. The KBW bank index, which has risen about 40% in 2021, continued to rise after results from some of the world's major financial institutions exceeded Wall Street's expectations.
- Throughout the pandemic, corporate profits have been a boon to the equity market. Since March 2020, the S&P 500 has climbed every quarter, averaging a 4% gain during a six-week period. According to Mark Haefele, chief investment officer at UBS global wealth management, pent-up demand should drive revenue growth, while pricing power and operating leverage should assist in offset inflationary pressures.
- Applications for state unemployment benefits in the United States have dropped to their lowest level since March 2020, indicating that firms are clinging to their employees in a tight labor market. Prices paid to American producers increased at the slowest rate of the year, owing to cooling costs of services.
