We remain optimistic about the future prospects for equity markets. Additionally, corporate earnings have been extremely strong, strong enough to make domestic equity valuations look more attractive. Recent gains in the labor market have been robust, but continued momentum will be necessary before the Fed begins to slowly step back from its current accommodative policy.
- It is possible that a slower reopening, or small reversals in reopening will lengthen the amount of time it takes for the labor market to make sufficient enough gains for the Fed to begin tightening policies.
- The senate has passed a roughly $1 trillion infrastructure bill. This package would create the largest investment in roads, bridges and rail lines in decades.
- The positive jobs report caused the 10-year treasury yield to jump. This shows how the bond market is attempting to reconcile economic data with expected Federal Reserve action. Watch the full update above.
We hope you find this video educational and informative. If you have any questions, please reach out to your advisor. As always, thank you for putting your trust in the Merit team.