U.S. equity markets bounced back last week with the strongest weekly returns since November as the speculative trading frenzy in heavily shorted stocks from January began to subside. The broad market rally pushed higher despite a weaker than expected January jobs report, as market participants increased their focus on the potential for additional fiscal stimulus.

Amid a wild week in financial markets, U.S. equities broadly tumbled lower while pockets of speculative trading mania drove significant volatility and surging prices in a narrow group of small, thinly-traded stocks. For the week, the S&P 500 and Dow Jones each lost -3.3%, taking the indexes into negative territory on the year, and the Nasdaq Composite lost -3.5%.

U.S. equity markets rallied higher last week as investors were encouraged by the initial reports from the fourth quarter corporate earnings season, which has gotten off to a strong start. For the week, the tech-heavy Nasdaq Composite surged 4.2%, while the S&P 500 and Dow Jones gained 2.0% and 0.6%, respectively.

Despite last week’s significant political developments and the turmoil at the nation’s Capitol building on Wednesday, U.S. equity markets continued to gain ground and closed the week at new all-time highs. For the week, the S&P 500 gained 1.9%, while the Nasdaq Composite and Dow Jones rose by 2.5% and 1.7%, respectively.

Following a strong close to 2020 with U.S. equity markets posting new all-time highs, market participants will be watching how well that momentum carries into the new year, which will kick off with an eventful week headlined by the Georgia run-off elections that will determine control of the Senate. T