WEDNESDAY, MARCH 31st Markets Review

A rising 10-year Treasury note yield now signals both an improvement in the economy and tightening Fed’s policy. Traders struggled to assess the conflicting signals arising from rising interest rates as the stock market pulled back from recent highs. Following the fact fundamentals have changed, investors are dumping their rate-averse growth stocks favouring higher-yielding blue-chip stocks and dividend-growth companies.

Data from Tuesday, including a look at consumer confidence:
It increased by 19 points in the most recent survey, 13 points more than expected, pointing to a strong spring season. On the other hand, investors are eagerly awaiting details regarding a multi-trillion dollar infrastructure plan that is sure to be accompanied by tax increases.

The Dow Jones Industrial Average closed at an all-time high on Friday.

The Dow Jones Industrial Average reached all-time highs on Friday.

As investors rallied behind a successful economic reopening amid Covid-19, the Dow and the broader U.S. stock market ended the week on a positive note.

Among Wall Street’s major averages, the Dow Jones Industrial Average climbed 1.4% while the S&P 500 Index advanced 1.7%. The Nasdaq Composite increased 1.2%.

The Dow increased 1.2% for the week, the S&P 500 rose 1.6%, and the Nasdaq ended 0.6% lower.

On Friday, the CBOE VIX Volatility Index, commonly known as the VIX, declined 4.8% to settle at 18.86 on a scale of 1-100, where 20 represents the historical average. For the week, the “fear index” declined 10%.

As of Friday, 100 million doses of Covid-19 vaccinations used, and President Biden set a new target of 200 million doses within the first 100 days in his presidency.

According to economic data, building permits fell 3.8% last month, with construction permits declining by 3.4%. Orders for durable goods declined 1.1%. Nondefense Capital Goods Orders excluding aircraft declined 0.8%.

Additionally, initial jobless claims dropped to 684,400 from 727,000 last week.