22 Feb 2021
US stocks little changed amid yield concern
Wall Street closed mixed on Friday, with the S&P 500 and Nasdaq booking a losing week, as investors continue to monitor rising treasury yields while awaiting further fiscal stimulus from the Biden administration. In an interview with CNBC, Treasury Secretary Janet Yellen stated that a large stimulus package is necessary and the $1.9 trillion plan could help the economy get back to full employment in a year. On the other hand, investors continue to worry that strong economic activity and more debt would push the inflation rate higher. Meanwhile, flash Markit PMI figures pointed to robust economic activity in both manufacturing and services sectors. Manufacturing PMI edged down to 58.5 in February of 2021 from 59.2 in January, in line with expectations, while the US services PMI grew at a 6 year high to 58.9 in February 2021, from 58.3 in the previous month. Also, existing home sales surprised on the upside, rising for the second consecutively.
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