- After corporate earnings, good hiring data, and a covid treatment breakthrough boosted optimism in the world's largest economy, US equities crept higher, with the S&P 500 recording its longest winning run since 2017. The value of the dollar and treasuries decreased.
- For the eighth session in a row, the S&P 500 climbed 0.1% powered by energy producers and materials, as investors flocked into firms that profit the most from a healthy economy. Meanwhile, the NASDAQ 100 plummeted, weighed down by Tesla Inc.'s 4.9% drop after Elon Musk asked his Twitter followers if he should sell 10% of his stock, to which they responded positively.
- Last week's news flow, which included the passing of a $550 billion infrastructure bill, washed away concerns that high inflation and the Federal Reserve's intention to reduce asset purchases would disrupt the economy. The results of Pfizer's viral therapy, as well as the easing of US travel restrictions, have fueled anticipation that corporations will continue to report excellent earnings.
- However, the recent rate of increases may make it difficult for stocks to move much higher in the absence of a new trigger.
- On Wednesday, markets will be watching a measure of US consumer pricing intently after advances in US payrolls last week revealed an increase in average hourly earnings.
- Oil fell to $82 a barrel in New York after the United States suggested it may reveal measures to lower oil and gasoline costs as soon as this week. Meanwhile, European gas and power costs have risen on fears that Russia may not fulfil the supply boost promised by Putin.
- In Europe, the STOXX 600 remained almost unchanged.
