Memorial Day weekend reopenings and fewer restrictions reignited people’s optimism, though some packed beaches across the country also prompted public health advisories.
Another biotech company announced positive vaccine news as a potential cure for coronavirus keeps advancing.
China is stirring the pot with Hong Kong again, and it doesn’t look like it’s going to end well.
CURRENT MARKET DRIVERS
The combination of positive vaccine news and loosened restrictions as the country reopened for the Memorial Day weekend sparked a strong rally to start this holiday-shortened trading week.
New milestones have things looking like the markets may be getting ready to make a move.
Hong Kong is going to be the next flashpoint between the U.S. and China. Relations are already tense, and the coming Hong Kong crackdown will only make them worse.
THINGS TO LOOK FOR
The mood was really positive as we started the week a day later because of the Memorial Day holiday Monday. The optimism was fueled by positive vaccine news from Novavax and people getting out and enjoying themselves as more of the country reopened. The market was up right from the start, with the Dow moving above 25K and the S&P 500 crossing over the psychologically important 3,000 level. The Nasdaq is only a few percentage points from posting a new all-time high. It looks like the markets have made up their mind, the lockdown is winding down, people are returning to work, and life is slowly getting back to normal.
We’ve been in the same range for an extended period of time and have been awaiting the point at which the markets would advance based on improving news (vaccine success and reopening) or retreat on more bad news (continued deaths and infections and more lockdown). If you reallocated, repositioned your portfolio and reaffirmed your risk tolerance, well done! If you have not, the window is closing quickly. These 600- to 700-point daily jumps on the Dow are hard to ignore.
ECONOMIC VITAL SIGNS
Volatility was down slightly and has remained below 30 for almost a week. Yields continue to rise as money comes into the stock market.
1197316 – Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC. The advisory firm providing youthis report is an independent financial services firm and is not an affiliate company of AE Wealth Management, LLC. Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. The information and opinions contained herein, provided by third parties, have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by AE Wealth Management. This information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. None of the information contained herein shall constitute an offer to sell or solicit any offer to buy a security or insurance product.