Despite Strong Economic News, Stocks Dropped This Past Week
Published Friday, June 18, 2021 at: 7:09 PM EDT
Stock market speculators and other “hot money” investors were unhappy last week and stocks dropped sharply but the economic news gave long-term investors plenty to smile about.
Economic data released this week gave investors something to smile about, but stocks still dropped sharply.
Economic data released this week was great:
- Retail sales dropped slightly in May but remains astronomically high.
- Housing starts in May were up slightly in May and for six months have been hovering around the strongest level in nearly 5 years.
- The U.S. Index of Leading Economic Indicators are at an all-time high.
Despite the strong economic news, the Standard & Poor’s 500 stock index lost 1.9% this past week.
The Standard & Poor’s 500 stock index closed today at 4,166.45, a loss of -1.31% from Thursday, and down -1.92% from last Friday’s all-time high closing price. The index is up +60.24% from the March 23rd bear market low.
As reported in last week’s update, inflation fears are preoccupying investor sentiment. With the Federal Reserve Bank hiking its forecast for inflation this past week and saying it expects to raise interest rates twice in 2022, inflation is causing investment market volatility. While the Fed could make a mistake and cause a recession, it’s telegraphing its monetary policy moves months in advance, which is reassuring to permanent investors.
Nothing contained herein is to be considered a solicitation, research material, an investment recommendation, or advice of any kind, and it is subject to change without notice. Any investments or strategies referenced herein do not take into account the investment objectives, financial situation or particular needs of any specific person. Product suitability must be independently determined for each individual investor. Tax advice always depends on your particular personal situation and preferences. You should consult the appropriate financial professional regarding your specific circumstances. The material represents an assessment of financial, economic and tax law at a specific point in time and is not intended to be a forecast of future events or a guarantee of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete, and is not intended to be used as a primary basis for investment decisions. This article was written by a professional financial journalist for Advisor Products and is not intended as legal or investment advice.
- With Economic Recovery Intact, Stocks Are Near Record Again
- Are The Five Stocks Driving The Market's Great Returns Overvalued?
- Despite Gloomy Jobs Report, The Economic Outlook Remains Bright
- S&P 500 Rebounded Today After A Difficult Week And Month
- China Financial Contagion Fears Come And Go In A Few Days
- August Retail Sales Indicate The Recovery Is Intact
- This Week’s Financial Economic News
- Latest Financial Economic News For Investors
- After Fed Inflation Policy Speech, Stocks Closed At New Record High
- Stocks Closed 1% Off All-Time High; Strong New Economic Data
- Stocks Broke Record High Again This Week
- U.S. Jobs Picture Improved, Covid Variant Risk Declined, And Stocks Closed Week At Record
- This Week’s Economic And Investment News
- Positive Earnings, Housing, and LEI News; Stocks Closed Week At A Record
- Today Versus Post-War History Of U.S Economic Cycles
- Stocks Surged 1.1% Today, Closing At A Record High For The Third Straight Week
- Strong Jobs Report Confirms Recovery
- What's Ahead For The Second Half Of 2021?
- Despite Strong Economic News, Stocks Dropped This Past Week
- Stocks Closed At A Record High; What's Expected For The Rest of 2021?
- Jobs Situation Report Pushes Stocks A Fraction From All Time High
- Inflation Rate Doubled In Past Two Months
- Fed Signals It's Thinking About Starting To Talk About Tightening
- Expect Inflation To Make Investors Nervous Through 2021