Stocks rebound to new highs as bond yields rise further
Stock markets turned higher in March, driven by continued progress in vaccine administration, U.S. stimulus payments, and positive economic data releases. The Federal Reserve is keeping monetary policy accommodative, and even revised up their projections for GDP growth and the unemployment rate for 2021.
Despite the continued rise in both nominal and real Treasury yields, risk-on market sentiment drove both the S&P 500 and Dow Jones Industrial Average to new highs. Meanwhile, the NASDAQ saw weakness for another month as technology stocks continued to face headwinds created by rising rates. Inflation is expected to increase in the coming months and will remain on investors’ minds