March 19th Market Update
Bonds and Gold Move on Fed Remarks
Bonds reached a 14-month high on Thursday, pushing gold down from its weekly peak before it headed back up. Gold bullion finished the week over 0.8% up. Silver is up 0.5%, gaining traction over the $26 mark.
Monday saw several European countries suspend use of the AstraZeneca COVID-19 vaccine after reports of blood clotting issues. Other vaccines are still being used. Some governments are also reimposing lockdowns as cases spike. U.S. cases, meanwhile, are rising slower than they have at any point since the beginning of the pandemic. Several Texas utility companies have gone bankrupt in the wake of the recent extended deep freeze.
Stocks dropped on Tuesday for the first time in five days. Joe Biden indicated he was looking at tax relief for the middle class and tax hikes for higher earners.
Treasury yields rose Wednesday before the Fed’s comments. Chip shortages continued to hurt automakers and tech companies. Biden offered more clarity on his tax plan, indicating he wished to raise taxes on anyone who made more than $400,000. The IRS announced a delay to the tax filing deadline. Jerome Powell of the Fed indicated that rates would likely stay low through the year 2023. Markets rose to new highs and Treasuries dropped.
Thursday saw 10-year Treasury yields spike to a 14-month high. The U.S. hit 100 million vaccine doses administered, six weeks ahead of schedule. New jobless claims rose unexpectedly week over week. The Nasdaq dropped 3.1% by the end of day.
Bonds dropped from their high Friday before trending back up. European markets dropped.