Markets are continuing their optimism for fiscal stimulus from President Joe Biden’s new administration. The S&P 500 lifted 1.39% yesterday to a fresh high — the best Inauguration Day rise in 36 years — with gains continuing into Thursday.
It may not last. Our call of the day is from Citi’s C, -2.18% report on investment themes for 2021, and the bank said there is “a significant likelihood of financial turbulence” coming to markets.
Equity index valuations are at elevated levels, potential credit downgrades are looming, and there is the possibility of inflation surprises this year, Citi said, underpinning strategists’ projections. Read more…..
Chart of the Day
CNBC’s Wilfred Frost breaks down Citigroup’s third-quarter earnings results as well as how the bank’s results compare to JPMorgan Chase’s third-quarter earnings.