US stocks reached another peak on Friday, while Treasury bonds, on the other hand, broke off an eight-day rally amid fears on escalating COVID-19 infections due to new virus strains.
To be more specific, S&P 500 closed 1.10% higher, thereby winning back the massive collapse it had the previous day. Meanwhile, dollar weakened against other world currencies.
Spectrum Management co-founder Leslie Thompson said the market is obviously in a positive trajectory, but there will be irregularities along the way.
JPMorgan, BlackRock and Morgan Stanley are among those that bet the market will continue to grow, especially with the start of Q2 earnings season next week.
But JAG Capital Management CEO Norm Conley pointed out the unpredictability of the market, reminding that a month ago the economy was just starting to recover, but now it is already showing very rapid growth.
As for Treasury yields, 10-year bonds posted a decline for two consecutive weeks, while 30-year bonds fell below 1.90% for the first time since February.
In another note, tensions between US and China worsened, after Washington added 34 Chinese businesses to its blacklist over alleged human rights abuses and high-tech surveillance in Xinjiang. This could affect the stock market next week.
