Market Update - Third Week Of April 2021
Stocks
Equities were mixed last week after dipping midweek once President Biden proposed a higher individual tax on investments for households above $1 million in annual income. It was the tax rate that was exactly as shown in his campaign literature plus an additional amount for the Affordable Care Act taxes. The S&P 500 edged down 0.11%, the Russell 2000 added 0.41% while the NASDAQ was down 0.25%. International developed markets (MSCI EAFE) declined 0.38% as the emerging markets index (MSCI EM) added 0.35%. In the U.S., real estate and health care were the best performing sectors while energy and consumer discretionary were the laggards.
Fixed Income
The bond markets were quiet last week in anticipation of a Federal Reserve meeting this week in which the central bank may hint about when it could reduce its bond purchase activities, allowing interest rates to rise. The yield on the 10-year treasury was nearly unchanged for the week at 1.58%
Commodities
The price of West Texas crude oil declined 1.7% last week to $62.14 per barrel. Concerns for near term demand due to a surge in COVID-19 cases in India and Japan in particular pressured oil prices downward.
Economic Data
Existing single-family home sales fell by 4.3% in March on a month-over-month basis due to a 28% drop in homes available for sale over the course of the last year. The median single-family home price increased 18.4%, the highest rate of growth on record. The West was the region with the largest decline in existing home sales; the median price there was $493,300 (up 17% year-over-year).
New home sales rebounded in March by 20.7% month-over-month and 67% above sales in March 2020 to reach the highest in 14 years. Here also there is a shortage of inventory, but the median sales price was up only 0.8% from a year ago. Three of the four U.S. regions saw an increase in sales.
Source: Gradient Investments
At Copley Financial Group, Inc. our financial advisors will be updating you on a regular basis about the changes in the market. If you want to discuss these matters with more detail, please contact me or your financial advisor, and we will be more than happy to walk you through them. Here at Copley Financial Group, Inc. with locations in San Diego, CA. and Uniondale, NY. the team and myself will be with you in every step of this process.
