Optimism Overtakes Everything in Markets Even as Recovery Stalls
- Reflation trade churns on as corporate sentiment hits records
- S&P 500 closed at record despite disappointing jobs data
Photographer: Spencer Platt/Getty Images
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Look at the economy and there’s grounds for concern, particularly after Friday’s hiring report. But the picture in bonds, stocks and commodities is fast becoming one of near unanimous optimism, as investors brace for the benefits of vaccines and stimulus.
It was there on Friday, when less-than-stellar employment data landed in a market where the reflation trade is in full swing. Long-dated Treasuries -- the ultimate haven asset -- sold off this week, pushing the yield curve to its steepest level since 2015. Breakeven inflation rates climbed to an eight-year high, breathing life into financial and energy stocks. And crude oil hit the highest price in a year.