E-mini S&P 500 (March): Settled at 3845, up 54.50
E-mini Nasdaq-100 (March): Settled at 13,294.25, up 308.75
All 4 major U.S. benchmarks settled at fresh record highs yesterday and each extended its gains ahead of today’s opening bell. Biden’s Presidency is underway and there seems to be a relief rally of sorts: markets are focused on the policies at hand right here, right now.
The new administration has prioritized added fiscal measures, the Paris Climate Accord, the World Health Organization, shutting down the Keystone XL Pipeline, and pandemic initiatives. This means egregious shifts in tax policy and a toughened approach on Big Tech is less of a concern for the administration right here, right now.
The Bank of Japan stepped to the plate last night and raised their growth forecast, but left policy unchanged as pandemic concerns linger. The ECB concluded their meeting this morning and, as expected, also left policy unchanged. ECB President Christine Lagarde’s press conference was held at 7:30 a.m. CT. The Federal Reserve is up next week.
From the U.S., economic data beat expectations across the board, including Weekly Jobless Claims, Philly Fed Manufacturing, Building Permits, and Housing Starts. Perhaps the most important is the improvement on Philly Fed Manufacturing for January amid continued softness on the New York read; there could be a divergence signaling that New York isn't the hub it once was, and the economy is actually improving in other parts of the country. Tomorrow’s flash PMI data could help answer this question.
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