US Stock Market Surges Following Final Stimulus Bill Approval
The US stock market soared to a new high following a tech rally revival, as investors eye the latest $1.9 trillion stimulus bill soon to be unleashed into the economy.
The S&P 500 was the subject of a record rally as investors piled into tech and consumer discretionary stocks, while the Nasdaq 100 index soared by more than 2.5% following a dip that put it 11% below its February record. In the meantime, the 10-year Treasury was spared a yield increase following the 30-year note auction, as inflation fears were put to rest for the time being following the better-than expected CPI print.
The latest round of stimulus spending has been the subject of concerns regarding a potential spurt in inflation, especially since the US economy was already poised for a better-than expected recovery even in the absence of further fiscal intervention. However, with the latest CPI figure sitting at 0.4% for the month of February, and a bleaker-than-expected jobless claims report, investors’ behaviour continues to be in line with the idea that slack still persists within the US economy.
Information for this briefing was found via Bloomberg. 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.