Monday, March 15, 2021

Impact of Economic Reopening

Monday, March 15, 2021 – Last week saw strong market performance, as the major, U.S. equity indexes posted gains including the DJIA and S&P 500 closing Friday at new record highs. While volatility has increased over the last several weeks, overall market sentiment appears to be in a tug-of-war between the recent increase in rates and the positive potential impact of the economic reopening, with equity markets favoring the latter.

Last week’s strong equity performance seemed to fall right in line with this dynamic and continue to emanate from optimism around the economy forging through the pandemic and getting open again. A big part of this optimism was fueled on Thursday by President Biden signing the latest fiscal stimulus package valued at $1.9 trillion, along with his announcement that by May 1st there should be ample supplies of vaccines for all adults.

Further fueling equity markets was Wednesday’s release of a softer than expected consumer price index (CPI) increase of 0.4% in February. St. Patrick’s Day on Wednesday will also be the date of the FOMC meeting and much speculation regarding the timing of the first Fed hike in interest rates which chatter has referenced 4Q of 2022.

For the week, the DJIA gained 1,282.34 points to close at a new high of 32,778.64, the S&P 500 picked up 101.40 points to also close at a new high of 3,943.34 and the Nasdaq wrapped up the week with a gain of 399.72 points to close at 13,319.86.

ETFG Quant Movers - Those ETFs who have had the largest weekly change in their ETFG Quant Total Scores.

ETFG Weekly Quant Winners: The three biggest gainers in their ETFG Total Quant Scores were found in the Global X US Preferred ETF (PFFD) which picked up 14.04 points to 47.50, the Barclays Women in Leadership ETN (WIL) gaining 10.37 points to 65.39 and the Vanguard FTSE All-World ex-US ETF (VEU) which added 8.48 points to close the week with an ETFG Quant Total Score of 43.76.

ETFG Weekly Quant Losers: The three biggest drops in their respective ETF Quant Total Scores were found in the Reality Shares DIVCON Leaders Dividend ETF (LEAD) which lost 13.78 points to 39.00, the Fidelity MSCI Information Technology Index ETF (FTEC) which shaved 13.22 points to 31.36 and the First Trust Horizon Managed Volatility Domestic ETF (HUSV) which gave back 12.77 points to close the week with an ETFG Total Quant Score of 45.78.

Thanks for reading ETF Global Perspectives and have a great week!

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