- US equities post gains as Biden announced infrastructure spending deal, US data cut tapering woes.
- Technology, pharma favored S&P 500 and Nasdaq, Dow follows the suit.
- Fed’s removal of virus-led restrictions on banks renews policy adjustment fears of late.
- Second-tier US data may entertain investors, qualitative factors become more important.
Wall Street marks another positive day, a better one for S&P 500 and Nasdaq, by the end of Thursday as US policymakers, be it Senators or Fed, got some relief. However, the latest sign of the Fed’s dialing back of the pandemic-led measures for banks probe bears.
Markets cheered US Senators’ ability to deliver President Joe Biden-backed stimulus, despite no clear details, ahead of the two-week-long holidays. Also on the positive side were softer economics easing pressure off the Fed policymakers to reconsider the monetary policy adjustments.
It’s worth noting that the US Federal Reserve’s (Fed) stress test results recently allowed banks to repurchase shares, after limiting the same through the covid times, which in turn hints at the Fed’s concern over easy money and signals future consolidation of monetary markets.
Amid these plays, S&P 500 and Nasdaq refresh record tops with 4,271 and 14,414 levels before closing around 4,266 and 14,370 respectively, up 0.58% and 0.69% in that order. Dow Jones Industrial Average (DJI) also posted 0.95% gains, or 322 points, while closing the day near 34,197.
US 10-year Treasury yields rose for the second consecutive day but the US dollar index (DXY) remains sluggish by the press time.
Eli Lilly benefited from the news that it intends to file for the antibody treatment whereas shares of Facebook and Google were also up over 1.0%. Further, Caterpillar and Boeing boosted Nasdaq while bank stocks also rose on the stress test results.
Having witnessed the initial reaction to the week’s key data/events, investors may witness quiet sessions heading into the month-end, as well as quarter-end. However, covid and China headlines, not to forget Fedspeak and second-tier data, may entertain them.
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