The Current Market Equation (How Investors Justify New All Time Highs)
What’s in Today’s Report:
- The Current Market Equation (How Investors Justify New All Time Highs)
- Weekly Market Preview: More Dovish Commitments from the Fed This Week?
- Weekly Economic Cheat Sheet: Important Inflation Data on Friday.
Futures are moderately higher on COVID-19 treatment optimism following the FDA’s authorization of plasma treatment for severely ill COVID patients.
President Trump announced on Sunday that the FDA has granted “Early Use Authorization” (EUA) for use of plasma from recovered COVID patients on severely ill patients. The EUA will increase the availability of this treatment.
While the EUA for plasma is clearly a positive, from a market standpoint a vaccine remains a true “silver bullet” that could super charge a rally. So, while positive, the plasma news is not a bullish gamechanger (although it does add to the feeling of FOMO (fear of mission out)).
Outside of the plasma news it was a quiet weekend, as there was no economic data nor any progress on stimulus.
Today will be a generally quiet day as there are no economic reports and no notable Fed speakers (the Jackson Hole conference is later in the week), so focus will remain on COVID treatment optimism.
