Daily Market Color March 15, 2021Equities Enjoy Third Straight Day of Record Highs Equities close at record highs while yields and swap rates fall across the curve For the third straight trading day, U.S. equities hit record highs as economies open-up and vaccine progress continues. The S&P and DJIA increased 0.65% and 0.53%, respectively. Relative to Friday’s significant sell-off in Treasurys, the bond market was quiet with yields decreasing across the curve. The 10yr yield finished the day down 1bps at 1.61%. President Biden plans for first major tax hike since 1993 After the passing of the $1.9 trillion stimulus and a large infrastructure bill expected to be presented in the coming months, the Biden administration is planning on increasing the tax rate on both corporates and high earners. Some of the proposals include increasing the corporate tax rate from 21% to 28% and raising the income tax on individuals earning more than $400,000. New York Manufacturing increases most since 2018; prices paid reaches the highest level in a decade The Empire State Manufacturing Survey’s general business conditions index increased to 17.4 in March, up from 12.1 in February. The index surpassed economists’ expectations of 15; a positive reading means activity is expanding. The prices paid index increased to 64.4, up seven points from the prior month increasing to its highest level in a decade.
