Vanguard S&P 500 ETF has been moving in an uptrend last several months, and according to technical analysis “bullish” trend remains intact. Vanguard S&P 500 ETF tends to perform well in March’s closing days, but concerns around COVID-19 and rising treasury yields could add pressure on its price.
Fundamental analysis: Vanguard S&P 500 ETF remains supported after the Federal Reserve raised its GDP estimate for 2021
Vanguard tracks the S&P 500 and gives you exposure to 500 of the most significant public companies in the United States. Vanguard S&P 500 ETF remains supported after the Federal Reserve raised its GDP estimate for 2021 to 6.5%, although risk aversion continues to dominate financial markets.
The weekly jobless claims showed improvement, and investors stayed focus on stocks that could benefit from a growing economy. Through the first quarter of 2021, energy, materials, industrials, and financials were top-performing S&P sectors, but according to analysts, the upside potential for the S&P remains limited for now.
Vanguard S&P 500 ETF is positively correlated with the S&P 500 index, but the renewed worries over a third pandemic wave could add pressure on this ETF. Newly reported COVID-19 cases are back on the rise, while the total number of U.S. cases since the pandemic began topped 30 million last week.
On the other side, rising treasury yields continue to spook investors as higher yields pose a risk to the economic recovery amid rising borrowing costs. The U.S. 10-year yield rose to 1.77% this trading week, and it is important to say that the Conference Board Consumer Confidence Index surged in March to its highest level in a year.
“A combination of the latest stimulus payments and the much better COVID picture likely explains the
