Rally continues. Stocks opened solidly higher as last week’s momentum and the shockingly strong US jobs report are carrying over to start the new week. The S&P 500 Index is basically flat year to date on a total return basis. In addition, the index’s three straight weekly gains of over 3% has occurred only once since WWII—in 1982. Asian markets were higher overnight, paced by Japan and Taiwan, while South Korea, Hong Kong, and China lagged. European markets are edging lower in midday trading.
Twin deficits weigh on the dollar. In a tumultuous year for global markets, the US dollar has now given back nearly all of its gains in 2020. We take a look at how the combination of the budget and trade deficits has been a long-term driver of dollar performance and what that could mean for markets later today in the LPL Research blog.
COVID-19 news. US daily testing counts continue to rise, eclipsing 500,000 over the weekend. The latest positive test rate of 4.5% was below the 5.6% rate a week ago, according to COVID-19 Tracking Project data. However more tests have stalled the positive trajectory of daily case growth, which remained just over 1.1% over the past week. New York City begins its phase 1 reopening today. Global cases surpassed 7 million, led by increases in Brazil and India.
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