Getting Better - Kuby's Commentary 06.28.2021

The selling pressure from the previous Friday vanished into thin air, and a bounce-back rally kicked in on Monday morning that continued throughout the week. The S&P 500 rallied 2.7% for the week, the Dow gained 3.4%, the Nasdaq climbed 2.4%, and the Russell 2000 jumped 4.2%. The bond market weakened on Friday as core PCE inflation came in at the highest rate in nearly 30 years, but the damage was minimal with the Ten-Year Treasury finishing up just 10 basis points to 1.54%. Oil and Gas stocks fared the best with crude oil advancing 3.4%, and Financials also rallied after all 23 banks passed the Federal Reserve's stress test, paving the way for share buybacks and dividend increases. There was a notable and historic surge in consumer spending, the largest rate growth since 1946, with clothing spending from consumer 35% higher than it was 2 years ago. It is estimated that 25% of consumers will also have to purchase new clothing given they require new sizing than before the pandemic.