U.S. stocks recovered from the weakness of the prior week, as positive economic data and odds of a fiscal stimulus rose—with several key indexes again reaching record highs.

Foreign stocks behaved in similar fashion to domestic stocks last week, with concerns over continued high virus counts, as well as vaccine supply shortages and delays in distribution. There was very little differentiation by region. GDP results for several European countries came in as expected, showing minimal growth at all, and 2021 estimates are a few percent below those in the U.S.

Economic data for the holiday-shortened week included a sharp rise in manufacturing and improvements in several housing metrics—the latter continuing a trend higher from recent months. Equity markets in the U.S. and abroad gained last week as the new Biden administration looks to pass additional stimulus legislation.

Global stock markets declined last week, with mixed economic data resulting from continued high Covid cases. Bonds were little changed in the U.S. in keeping with slower rises in interest rates, while foreign bonds were hampered by a stronger U.S. dollar last week. Commodities were mixed to neutral in several key areas, such as energy, but agricultural prices saw a spike due to rising demand.