After struggling toward the end of February, stocks got off to a strong start as March began. Equities performed well early in the week due to positive news regarding the vaccine rollout and rising belief from investors that inflation concerns may be overblown. Regarding vaccines, the Food and Drug Administration (FDA) granted emergency approval to a single-shot vaccine from Johnson & Johnson, a timely addition in the fight against COVID-19. President Joe Biden stated that, given the approval of the new vaccine and existing plans to ship millions of doses of the Pfizer and Moderna vaccines, the U.S. should have enough supply to vaccinate all adults by the end of May, not July as was previously expected. The FDA also laid out a fast-track approval process for new vaccines designed to combat emerging strains of COVID-19. Perceptions about the potential—or lack thereof—for inflation rest on details and time-frame. With the economy on the verge of reopening and a large fiscal stimulus plan looming, near-term inflation is likely as businesses regain pricing power lost during the pandemic. However, due to stagnant wage increases and innovative technologies driving productivity, longer-term inflation seems to be less of a concern. The number of new worldwide COVID-19 cases has nearly halved since the peak in early 2021. A confluence of events tied to the vaccine rollout, brutal winter weather in the U.S., and varying degrees of lockdown protocols have tamped down virus transmission in recent weeks. While it is possible that the drop in cases slows as spring arrives, there is hope that the continued delivery of vaccinations will continue to drive the new case count down. As such, the prospects for the health of Americans and the economy at large appear bright. Stay safe and be well. Bryan Market comments are based on the S&P 500 index which is unmanaged and cannot be directly invested into. Past performance is no guarantee of future results. Investing involves risk and the potential to lose principal. The information provided, including references to individual companies are for general informational and educational purposes only and is not a recommendation of any kind or investment advice. Forward-looking statements are subject to numerous assumptions, risks, and uncertainties, which change over time and cannot be guaranteed |
March 4 Hendrickson's Market Update
