U.S. equities extended their gains for a second week as weaker-than-expected economic data pushed investors toward defensive shares.
“Markets had assumed the pandemic was over, and between the consumer confidence numbers and now the jobs report numbers, it’s clear that the pandemic is showing up in the economy again,” said Brad McMillan, chief investment officer at Commonwealth Financial Network. “Markets are trying to figure out whether we really are past the pandemic or not.”
Investors will be paying close attention to how the recent economic data affects the Federal Reserve’s timeline for tapering asset purchases, which the Fed chair has said could start this year.
Real estate shares in the S&P 500 rose 4 percent this week, the biggest gain since March this year. Megacap companies that were pandemic darlings, such as Apple and Amazon, also rallied, with the NYSE FANG+ Index on Wednesday reaching an all-time high.
Markets will be closed Monday for Labor Day. On Wednesday, Dallas Federal Reserve President Robert Kaplan will hold a virtual town hall discussion on economic developments; investors will be watching for tapering clues.
The Treasury will sell 13-, 26- and 52-week bills Tuesday. They yielded 0.46 percent and 0.51 percent in when-issued trading, respectively.