The markets took a breather last week and posted modest losses across the board. Political concerns, including the vote to impeach President Trump for the second time, as well as fears over the rampant spread of COVID-19 and its impact on the economy, drove market pessimism.
President-Elect Biden unveiled his plan for a new $1.9 trillion relief package that includes additional checks to many Americans as well as funding for vaccine distribution and support to state and local governments. The markets would likely cheer such a move, but there remains much political opposition to the nearly $2 billion price tag.
The Dow Jones Industrial Average ended the week with a loss of 283 points (0.9%), the S&P 500 closed down 55 points (1.45%) and the NASDAQ posted a loss of 203 points (1.54%).
Looking forward it is clear that several obstacles remain in the way of a full economic recovery. However, there are also many reasons to remain optimistic. The Federal Reserve has indicated that they continue to be supportive of further measures to spur on an economic recovery while increased vaccinations should lead to an eventual return to normal.