Wednesday, June 9, 2021
Top Story
New highs are close
The S&P 500 Index is very close to another new high but is having trouble getting there.
- Three days in a row it closed within 0.15% of an all-time high but didn’t make a new high—first time since 1964.
- Nine days in a row it closed within 1% of an all-time high but didn’t make a new high—first time since 2017.
- The S&P 500 has already made 26 new highs the first five months of 2021, the most since 1998.
- Many investors are worried about new highs, but future performance after new all-time highs has actually been quite strong.
- We will take a closer look at new highs later today on the LPL Research blog, available at 1p.m. ET.
Daily Insights
U.S. equities opened little changed following Tuesday’s mixed market results
- The Nasdaq Composite is approximately 0.3% higher as growth stocks continue their run and the S&P 500 Index is fractionally higher.
- European equities are mostly lower through midday trading as Germany’s exports increased in April.
- Asian markets ended their sessions mostly lower with China (Shanghai Composite) an exception, finishing over 0.3% higher.
Technical update
Major indexes spent another day churning just below all-time highs without the S&P 500 managing to eclipse its May 7 record. This morning the yield on the 10-year Treasury is pushing down to 1.50% ahead of the Consumer Price Index (CPI) report on Thursday. 1.46% marks a key level to watch going into and after the report, as it marks a tactical low that was quickly reversed following last month’s print.
Policy Shifts May Challenge Markets
LPL Research contends that policy tailwinds may turn into headwinds in 2022, but economic fundamentals are likely to dominate. Learn more in this week’s Weekly Market Commentary.
Meme Stock Mania
On this week’s LPL Market Signals Podcast, Chief Market Strategist Ryan Detrick and Equity Strategist Jeff Buchbinder examine what meme mania means for investors, explore how policy could impact things for the rest of 2021, and dissect the recent weaker than expected monthly jobs data.
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