Mon, 10 May 2021 | investing
The TD Ameritrade Investor Movement Index® (IMXSM) decreased .85 percent to 8.14 in April, down from its March score of 8.21. The IMX is TD Ameritrade’s proprietary, behavior-based index, aggregating Main Street investor positions and activity to measure what investors actually were doing and how they were positioned in the markets.
The reading for the five-week period ending April 30, 2021 ranks “High” compared to historic averages.
“Despite an incredibly strong first quarter earnings season and all three major indices reaching record highs, stocks mostly treaded water in the latter half of April. Many clients used the last month to rebalance their portolios as they sold names as they reached historical peaks and bought names they believe will do well in the reopening trade,” said JJ Kinahan, chief market strategist, TD Ameritrade. “While data has been looking positive, we still have some lingering concerns including inflation. The question remains if the recent flow of positive earnings reports will give us another ‘leg up’ in the market or if inflation or other concerns will end this quiet period and lead to increased volatility.”
Equity markets continued their upward trend during the period, with all three major equity indices hitting all-time highs. The S&P 500 and Dow Jones Industrial Average increased 5.2 percent and 2.4 percent, respectively. The Tech sector posted the biggest gains with the Nasdaq Composite increasing 6.3 percent, propelled by recording earnings among many mega-cap tech companies. Market gains accelerated as the U.S. economy expanded rapidly in the first quarter, growing at a 6.4 percent annual rate. Retail sales jumped 9.8 percent, extending economists' projections of a consumer-led recovery this year, while jobless claims dropped sharply during the period and reached the lowest point since the beginning of the pandemic. The Federal Reserve also held interest rates near zero and announced plans to continue to support the economic recovery.
Source: TD Ameritrade, Inc.