“Manic Monday” Followed By Strong Rally, DJIA, Nasdaq and S&P 500 All Close at All-Time Highs

Summary

- S&P 500 closed at an ATH of 4,411.79 on the week. The DJIA closed above 35k for the first time ever. Nasdaq is looking like it wants 15,000 bad

- The beginning of the week couldn’t have been more different from the end. Monday was the worst sell-off of 2021 for the DJIA

- The rising prevalence of the ominous Delta Variant and uncertainty around inflation and the debt ceiling are all risks markets seem to be seeing through given the recovery.

- July and August tend to be poor months for returns in markets, and this is even more true after a strong first half. Nonetheless, our analysis suggests that there is a lot of upside in 2H2021
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What a difference five days can make right? It seemed as if the whole world was falling apart on Monday, particularly if you were in our favorite sectors that took a significant shellacking. Friday afternoon saw the culmination of a powerful rally in the wake of that sell-off that resulted in the three major indexes all closing at all-time highs. If you were looking strictly at health care outcomes, you might be confused. Isn’t the healthcare data getting scary again? Aren’t the unvaccinated at major risk? Yes, these things are all true. It is highly unfortunate that vaccine hesitat...

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