The S&P 500 surpassed its average 2021 year-end target price already.
But that seemed to be the limit… for now. US equity markets roller-coasted around since the futures opened.
Futures leaked lower from Sunday’s open (after Friday’s manic meltup), after weekend news that a new study shows that the South African variant may evade protection from the Pfizer vaccine. Once Asia closed and Europe opened, stocks went bid, ramping back to unchanged by the US cash open, which was met with selling… then a big rebound again at the EU close which got us back to unchanged only for The Fed’s Jim Bullard to burst the brief bubble. However, echoing Friday’s malarkey, the last hour or so saw another panic-bid. Then with minutes to go some Ukraine/NATO headlines seemed to spook stocks a little. The S&P ended unchish, Small Caps were worst with Dow and Nasdaq modestly lower.
Bullard specifically suggested taper talk could begin when vaccination rates hit 75% (which could be within 2 months) and his timing coincided with a stop run to Friday’s highs, sparking a the downswing…