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Stocks continued to see wide swings and heavy volatility this week, as several tail/headwinds persisted. On the positive side, traders finally saw the results of the long-awaited stimulus measures promised by the Biden administration. This week, President Biden signed the $1.9 trillion plan, which includes $1,400 checks to eligible American citizens. Wall Street has been banking on additional stimulus for weeks now and the news was received positively.
However, stocks continued to be pressured by rising bond yields. With the 10-year Treasury bond’s yield trending higher over the course of the week, traders continued to sell high-growth and risky stocks.
These fears were perhaps justified as data for the week showed a rebounding economy. Measures of inflation spiked, while consumer health and labor health also showed big gains.
Earnings painted a mixed picture on the week, however. While the bulk of bellwethers have reported, many smaller tech firms have started to announce their numbers. Revenues and guidance figures remain weak. This helped to create more volatility over trading sessions.
All in all, stocks continued their wild swings and big movements as traders reacted to the week’s push and pull.
Be sure to check out our previous Wrap here, when stocks fell over the week.