Equities bounced back mid-week amid sector divergences. The S&P 500 was down 0.1%, balanced by declines in high growth stocks and gains in so-called value stocks. Rising interest rates put pressure on growth stocks nearly every day, although some days witnessed mid-day buying to limit the damage.
Equities inched up on the week, setting new highs in the process. The S&P 500 advanced 0.6%, but there was notable rotation under the surface. The energy sector jumped 4.0% as freezing temperatures across the country forced oil shut-ins and boosted demand for natural gas and other related commodities.
Equities posted a strong week as major indices pushed to record highs. The S&P 500 advanced 2.1% with the Energy Sector being a large catalyst. The S&P 500 Energy Sector is up 18.0% year-to-date and far outpacing the 4.2% advance in the S&P 500.
The economy grew by 4% in the fourth quarter of 2020 as indicated by the first reading of GDP in 2021. This comes after growth of 33.4% in the third quarter.