U.S. benchmarks surged in the second half yesterday. The momentum carried into the evening hours, but weakness in the Treasury space overnight halted the rally, putting stocks once again on their backfoot ahead of the opening bell.
The rebound from January’s late swoon has been miraculous and we must acknowledge that some degree of perfection, for the landscape we have, is already priced in; an accommodative Fed, $1.9 trillion in fiscal stimulus, and an improving vaccine rollout.
Upon a marathon of votes Thursday night and into Friday morning, Democrats in the Senate have pieced together Biden’s plan through the budget reconciliation process. The news began lifting risk assets late Thursday and those tailwinds carried into the weekend.