The relatively successful rollout of coronavirus vaccines in the U.S. and the subsequent reopening of the economy, is creating a strong backdrop for investment that is likely to continue to support U.S. markets, according to Holly MacDonald, chief investment officer at Bessemer Trust.
Already, signs of that strength are appearing in economic data, from an unusually strong U.S. employment report in March (with 916,000 jobs added), to high readings from the Institute for Supply Management’s manufacturing and service sector indices.
“There is pent-up demand that is now coming into play as it relates to consumers and businesses starting to invest,” MacDonald says.
After the S&P 500 index nosedived on March 23, 2020, amid a wave of lockdowns to stem the spread of the coronavirus, U.S. stocks went on a tear led by companies benefiting from a population suddenly living and working at home. Sector trends shifted in the market by November as Pfizer and BioNTech announced strong initial results from its vaccine candidate, which received emergency use authorization from the U.S. Food and Drug Administration shortly afterward, on Dec. 11.