Wednesday, April 14, 2021

Global Market Square

By on February 18, 2021

The U.S. stock market ended Thursday’s session with significant losses, making a 180 degree turn from last week’s gains. There is a silver lining for most equities as most of the fourth-quarter earnings reports are coming to an end; the broader results have been much better than expected.

Meanwhile, another development causing concern and furor among investors and analysts is the sharp drop in U.S. Government bond prices during the first two months of 2021, slowly menacing the current bull market.

So far, February has proven to be one of the most significant monthly increases in yields since 2018.

Another blow to the economic recovery came in the form of the U.S. Initial Claims for Unemployment Insurance’s 1.53% increase to 861,000, a four-week high, which is up from 848,000 last week and 322.1% from one year ago.

As new Covid-19 strains rise, economic restrictions also increase, and the grave winter storm that has engulfed most of the United States is also contributing to derail economic activity. 

When market conditions like the current ones appear, it pays to have a well-diversified portfolio that can help weather the challenges. 

Wall Street summary for February 18, 2021:

  • The Dow Jones Industrial Average closed at 31,493.34, down 117.68 points, or 0.38%.
  • The Standard & Poor’s 500 closed at 3,913.97, down 17.36 points, or 0.44%.
  • The Nasdaq Composite Index closed at 13,865.36, down 100.14 points, or 0.72%.
  • The Birling Capital Puerto Rico Stock Index closed at 2,182.39, up 13.34 points, or 0.62%.
  • The U.S. Treasury 10-year note closed at 1.29%
  • The U.S. Treasury 2-year note closed at 0.11%

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