Infrastructure Month

Weekly Market Update | November 22, 2021


Global equities (as measured by the MSCI AC World index) were mixed last week as a rising number of Covid cases in Europe spooked investors. In the U.S., the Dow Jones dropped 1.4% while the technology-laden NASDAQ jumped 1.2% as the reopening trade took a step backwards. Non-U.S. markets were mixed as well with European stocks falling 1.3% while Japanese stocks rallied 0.7%. Emerging Market stocks underperformed – losing 1.3% as the U.S. dollar strengthened. The 10-year U.S. Treasury yield was little changed at 1.55%.

President Biden’s economic agenda took a step forward as he signed into law the Infrastructure Investment and Jobs Act and the House of Representatives passed its version of the Build Back Better Act. The Senate will now likely alter the bill to reflect its desired changes with negotiations possibly lasting through yearend. While the bill may be trimmed down even further, we think the odds of eventual passage are relatively high.

Separately, U.S. economic data have been surprising to the upside and point to an accelerating economy in the fourth quarter. This may lead to the Fed eventually accelerating its pace of tapering in early 2022.

The next Weekly Market Update will be released on December 6th. For those who celebrate it, Happy Thanksgiving! Also, we would like to give a sincere thank you for your readership…it is truly appreciated.