Stock Outlook, GDP Forecast, and the Week Ahead, for Week Ending 08/20/2021
A reportedly stronger than expected job market last month helped lead to another week of gains for the S&P 500, as the economic recovery stayed on track. This is despite seeming rising awareness of the dangers associated with the Covid-10 delta variant and the possible spread of future variants.
The flat S&P 500 futures curve continues to predict the market won’t be higher than it is by the end of the year, without more unexpected good news. The best unexpected good news I can think of is a big increase in the number of people being vaccinated around the world, to halt the evolution of Covid-19 altogether. Looser monetary policy would also be good news, though most economists would not agree.