Weekly Market Recap
February 26, 2021
Higher Treasury yields moved markets this week. The 10-year Treasury yield went above 1.6% for the first time in nearly a year, before retreating to 1.45%. This led to a risk-off move in stocks. Volatility increased, the S&P 500 declined about 1.5% this week, and value outperformed growth. Still, the S&P gained over 3% this month and remains positive for the year. For reference, the yield on the S&P 500 is just under 1.6% and higher bond yields have pushed the average 30-year mortgage rate to over 3.1%, about 0.3% higher than it was just a few weeks ago. This has slowed mortgage applications, including refinancing activity. Gold fell nearly 3% this week, putting its price at levels not seen since June, while oil prices rose to the highest in over a year, to over $60/barrel. For the next several weeks, 1-year stock performance will be lapping the sell-off of 2020. From the March 23, 2020 closing low to now, the S&P 500 has gained over 70%, highlighting the importance of sticking with stocks for the long run and not trying to time the markets. Next week we look forward to the monthly jobs report and several other macro data points. To learn more about how we help business owners, please click here: https://mybuckingham.com/services/business-services-and-tax-preparation.
Ryan P. Johnson, CFA, CFP®
Director of Portfolio Management & Research