In Washington, the potential for additional stimulus in the near term continues to fade as negotiations between Republicans and Democrats hit new hurdles. The stalled negotiations come when the coronavirus is surging across the globe. The next several weeks will be important for managing the virus over the winter months. The direction of the markets going forward will be closely tied to the interplay between stimulus and the need to constrain economic activity to manage the pandemic.
Earnings season continues this week and has been off to a solid start, as companies continue to navigate the pandemic’s impact on their businesses. The other event that I’ll be watching closely this week is the testimony offered by large tech companies before Congress. Lastly, big tech is likely to see more regulation and a tougher operational environment for the foreseeable future.
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