Last week’s jobs report turned out to be strong, with 916,000 new jobs added for the month, representing the most new jobs added since last year. The future path of the economy is very much tied to the pandemic, and good news continues to come out on the vaccination rate in the U.S.
The outlook for the U.S. economy continues to strengthen, as the dollar looks poised to remain strong given higher interest rates and the pickup in economic activity. I expect U.S. equities will keep outperforming most global stocks, especially emerging markets, during the remainder of 2021 given the vaccination rate and monetary stimulus in the U.S. Rising inflation pressures will continue to put upward pressure on U.S. interest rates for the remainder of the year, but I don’t expect the 10-year to move above 2.5% during 2021.
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