The fast spread in the Covid-19 delta variant has put concerns on the growth of the economy. The CBOE Volatility Index shot to 25 suggesting high fear among investors on Wall Street.
The S&P 500 has been trading at record-high levels. Analysts expect the markets to trade at their peak until the government provides stimulus to back the economic recovery.
Soon as the Labor Department released the inflation numbers, the US Treasury Yield surged 4 basis points on Tuesday. The Fed noted that the inflation worries will be temporary.
S&P Cryptocurrency BDM Ex-MegaCap Index a subset of the BDM that excludes the constituents of the S&P Cryptocurrency MegaCap Index (Bitcoin and Ethereum).
Dow Jones successfully revived itself from the previous loss of 260 points setting a new record high.
The spread of the delta variant in East Asia and the US has resulted in the spike of the COVID-19 cases. Concerns of a slowdown in the economic recovery put markets under pressure.
Investors have reverted to tech stocks. Tech giants Apple and Amazon have seen a rise of over 15% in the past month,
The vaccination campaigns of the American government have yielded good dividends as attested to by the rapid return to economic normalcy on all fronts.
Positive news surrounding COVID-19, the discovery of a vaccine, lockdown reopenings all played a big part in fueling the growth on Wall Street in 2021.
Fed Chairman Jerome Powell tries to abate inflation fears saying that the consumer price surge is a temporary event. Wall Street reacted positively to Powell’s statement closing in the green.
The losses that are seen in the Dow Jones Industrial Average, as well as other market trackers, can also be attributed to the rising inflation fears.
While anticipations are high, billionaire hedge fund manager Paul Tudor Jones warns that a wrong move or comment from the Fed Chairman Jerome Powell could spark a sell-off in risk assets.
The US market indices also saw a good boost as the Department of Labor released the jobless claims for the week ended June 5.
The market remained flat on Tuesday while Airline stock picked up momentum as the CDC eased up travel restrictions to nearly 61 countries.
This article provides an incite into the expected market activity for the Memorial Day 2021.