U.S.MARKET RESILIENCY INTACT AMID CORONAVIRUS THIRD WAVE

Large U.S. fiscal and monetary stimulus measures and a swift rollout of vaccines have pushed the S&P 500 and Dow to record levels, with the CBOE volatility index retreating to pre-pandemic lows.These security prices are reflecting an anticipation that the economy is going to get back to normal sooner rather than later and it is not exactly clear where we are in that process.

The International Monetary Fund raised its global growth forecast to 6% this year from 5.5%, a rate not seen since the 1970s.Still, some investors remained worried about the possibility of rising inflation and proposals for higher taxes. In addition, other countries continue to have difficulty containing the coronavirus. Canadian Prime Minister Justin Trudeau said on Tuesday the country is facing a very serious third wave.

The S&P 500 slipped on Tuesday but stayed near closing record highs posted in consecutive sessions, as investors weighed more strong U.S. economic data against nervousness about upcoming quarterly earnings reports.Volume on U.S. exchanges was 9.65 billion shares, compared with the 12.39 billion averages for the full session over the last 20 trading days.

Shares of many economically sensitive companies are classified as value stocks. But growth, which includes many stocks in the technology and communication services sectors, has shown signs of life.

Market up-trend is intact and likely to touch new high in coming trading sessions.