FX.co ★ US stocks post moderate growth despite strong labor force and housing data

US stocks grew moderately on Wednesday despite strong labor and housing data. Apparently, investors remain concerned about the growing rate of COVID-19 infections, which occurred because of the delta variant of the virus.

The S&P 500 index fluctuated, but still posted a 0.25% gain. All in all, the index grew 14% since the beginning of the year.

Investors are hoping for a quick return to normalcy amid fears that rampant inflation or further COVID-19 restrictions could derail economic recovery. Interestingly enough, the companies that benefit the most from the rebound rallied on Wednesday. To be more specific, energy, industrial and financial stocks outpaced tech giants yesterday.

But Candice Bangsund, vice president and portfolio manager for Fiera Capital, said the rebound will not be smooth, as the market will surely exhibit more frequent bouts of volatility.

Nevertheless, Dallas Fed President Robert Kaplan assured that the cut in bond purchases, which he hopes will begin "soon," should run more smoothly this time as the members are already considering it.

Atlanta Fed President Rafael Bostic also said the US has already recovered from the pandemic in terms of GDP, but "it will take some time to return" in terms of employment.

Other key events to watch out this week are:

- speech of China President Xi Jinping (Thursday);

- OPEC meeting (Thursday);

- speech of ECB President Christine Lagarde (Friday);

- report on US employment (Friday).