A more cautious tone crept into markets, with equities stalling at elevated levels. The S&P500 is unchanged on the day, although it did make a fresh record high. The defensive US dollar fell, but AUD and NZD struggled for further gains. Bond yields fell slightly.

Sentiment remained upbeat, the S&P500 currently up 0.4% and at a record high. The AUD and NZD rose, as did bond yields initially. Expectations of further US fiscal stimulus remained high.

The monthly US jobs report was weaker than expected, boosting US equities on expectations that more government stimulus will be required. The S&P500 rose 0.4% to a record high and the defensive US dollar fell.

US equities rose to near record highs (S&P500 +0.9%), and bond yields rose further, although risk-sensitive currencies again fell as the US dollar extended a month-old recovery. US economic data was firmer than expected.

US equities rose slightly further (S&P500 +0.5%), as did bond yields, amid some stronger economic data. Currencies were again mixed.

US equities gained further as the retail-driven short squeeze lost momentum, the S&P500 up 1.8%. Bond yields also rose, but risk-sensitive currencies mostly underperformed the US dollar.

US equities rebounded, the battle between retail traders and hedge funds seen as a short-term phenomenon. The S&P500 is currently up 1.6%, but risk-sensitive currencies and bond yields have not followed suit.

US equity markets rebounded after brokers restricted activity in stocks which had been subject to short squeezes recently. The S&P500 is currently up 2.0%, with bond yields and risk-sensitive currencies also higher.

Sentiment reversed overnight, the S&P500 currently down 1.9%. Some attributed the decline to asset liquidation by hedge funds exposed to a recent short-squeeze. The defensive US dollar rose, and bond yields fell. The Fed remained on hold, but the closely-watched press conference is currently in progress.

There was a slightly more upbeat tone to some markets. The S&P500 made an intraday record high, currently up 0.1% on the day. The defensive US dollar fell. News of note included the IMF upgrading its global growth forecasts, US vaccine delivery being accelerated, and the ECB’s investigation of EUR/USD appreciation.