Technology shares were sent soaring to new highs as investors’ optimism lifted amid increasing confidence in the country’s economic recovery amid Biden’s ambitious $2.25 trillion infrastructure spending plan.
The S&P 500, which tracks the performance of 500 companies listed on major US stock exchanges, rose by 0.8% to above the 4,000 mark for the first time, while the Dow Jones Industrial Average increased by 0.25% to 33,062. Similarly, the broad market index also soared to record-breaking intraday high, with the Nasdaq advancing by 1.74%. Seven of the 11 S&P sectors also recorded gains, as technology and communication services grew by over 1.5%.
A number of stocks jumped following US President Joe Biden’s extensive infrastructure spending plan, which is expected to total $2.25 trillion. The latest proposal is divided into two parts, and is aimed at helping the country’s economy re-emerge from the Covid-19 crisis. Biden’s plan includes $650 billion in spending towards affordable housing and clean drinking water; $621 billion towards transportation infrastructure; $580 billion for combatting climate change; and $400 billion for healthcare.
Investor sentiment was also boosted by the upcoming US jobs market report, which is expected to show a significant improvement following the $1.9 trillion stimulus bill and ongoing vaccination drive.
Information for this briefing was found via Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.