Weekly Market Recap
May 7, 2021
The S&P 500 hit another new high despite a surprisingly weak monthly jobs report. Some expected a stronger jobs number, which could have put pressure on the Fed to reduce stimulus. When the opposite was reported, yields fell and stocks rose. Initially the 10-year Treasury dipped below 1.5% for the first time in 2 months, but yields later came back to unchanged around 1.58%. The weekly jobless claims report on Thursday showed continued improvement but the monthly nonfarm payroll report on Friday showed only 266,000 jobs being added in April, well below the nearly 1 million job estimate. The 916,000 jobs added in March were revised down by 146,000 to 770,000. Sector rotation in the market drove value to outperform growth this week, as the give and take seems to be changing by the month. Earlier in the week, reads on manufacturing and services for April remained strong. Next week we look forward to fresh reads on inflation at both the consumer and producer level. If your needs are changing or if you would like more information on the markets or your portfolio, please contact your Buckingham advisor.
Ryan P. Johnson, CFA, CFP®
Director of Portfolio Management & Research