Equities continue to march higher. Despite the coming taper, Fed policy remains accommodative, and a strong earnings outlook supports select stocks. Although COVID-19 hospitalizations have surged, last week investors focused on the FDA’s full approval of the Pfizer vaccine. Both the S&P 500 (+1.5%) and Nasdaq (+2.8%) closed at all-time highs, and small caps (+5.1%) had their best week since March. Events in financial markets, however, were overshadowed by tragedy in Afghanistan.
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