Saturday, April 10, 2021

Global Market Square

By on March 25, 2021

The U.S. stock market regained its winning ways with the Dow Jones leading the way with a close to 200-point rise. However, global markets were mostly lower as the Suez Canal blockage is causing significant harm to global shipping and adding logistical pressure at a time where demand for goods has risen sharply.

Moreover, the European economic recovery has been impacted as a sharp rise in COVID-19 cases during the last 30 days will create challenges; additionally, vaccine distribution in the continent has proven to be quite problematic. 

In the U.S., the opposite is happening; the economic recovery has been robust and faster than expected due to the massive vaccination efforts and the fiscal stimulus.

As we analyze the stock market downturn in the pandemic‘s anniversary from its lowest point on March 23, 2020, to March 23, 2021, we note the following results:

  • Dow Jones Industrial Average has yielded a 74.39% return.
  • The Standard & Poor’s 500 has yielded a 74.78% return.
  • The Nasdaq Composite Index has yielded a 92.8% return.
  • The Birling Capital Puerto Rico Stock Index has yielded a 147.8% return.

While market volatility will remain our projection, economic recovery will be stronger than anticipated with increased consumer spending and continued government support.

Key economic benchmarks reported include:

  • U.S. Real G.D.P. pegged at 4.30%, higher than the 4.1% estimated, and compared to 33.40% last quarter.
  • U.S. Initial Claims for Unemployment Insurance fell to 684,000, down from 781,000 last week, a 12.42% drop from the previous week and the lowest level since the pandemic began.

Wall Street summary for March 25, 2021,

  • The Dow Jones Industrial Average closed at 32,619.48, up 199.42 points, or 0.62%.
  • The Standard & Poor’s 500 closed at 3,909.52, up 20.38 points, or 0.55%.
  • The Nasdaq Composite Index closed at 12,977.68, up 15.79 points, or 2.01%.
  • The Birling Capital Puerto Rico Stock Index closed at 2,328.33, down 4.47 points, or 0.19%.
  • The U.S. Treasury 10-year note closed at 1.63%
  • The U.S. Treasury 2-year note closed at 0.14%.