STOCK MARKET OUTLOOK: S&P 500 INDEX HITS NEW RECORD AS BIDEN, SENATE REACH INFRASTRUCTURE DEALThe S&P 500 Index is on tempo to shut at a b
STOCK MARKET OUTLOOK: S&P 500 INDEX HITS NEW RECORD AS BIDEN, SENATE REACH INFRASTRUCTURE DEAL
- The S&P 500 Index is on tempo to shut at a brand new all-time excessive as shares acquire floor
- S&P 500 worth motion placing in a powerful session with information of an infrastructure deal
- President Biden tweets {that a} bipartisan infrastructure settlement has been reached
The S&P 500 Index is pacing a 0.6% acquire on Thursday and appears set to shut at a contemporary document excessive. Shares have bounced again notably since traders threw a minor tantrum over the specter of Fed tapering final week. This appears to observe FOMC officers like Chair Powell downplaying fee hike threat in his latest congressional testimony.
Volatility has correspondingly normalized, which in flip, seems to be serving to threat urge for food recuperate and push shares again increased. One other bullish catalyst doubtless propelling S&P 500 worth motion is President Joe Biden asserting {that a} bipartisan group of ten senators have come collectively to forge an infrastructure settlement.
PRESIDENT BIDEN ANNOUNCES INFRASTRUCTURE DEAL HAS BEEN STRUCK
Republican senator Susan Collins said {that a} deal has been reached for the worth tag and scope of President Biden’s infrastructure package deal. Biden acknowledged in a tweet asserting the settlement that he expects the infrastructure deal to create hundreds of thousands of American jobs. It’s stated that the infrastructure plan agreed upon will value roughly $560-billion. Congressional leaders have agreed to carry votes on a bipartisan infrastructure package deal along with having a price range decision that fast-tracks the remainder of President Biden’s $4-trillion infrastructure package deal someday in July.
S&P 500 INDEX PRICE CHART: DAILY TIME FRAME (18 FEB TO 24 JUN 2021)
Chart by @RichDvorakFX created utilizing TradingView
The market’s response to the infrastructure settlement announcement sees the S&P 500 and different main inventory indices just like the Dow Jones and Nasdaq extending their advances to session highs. S&P 500 worth motion at the moment trades at its higher Bollinger Band close to the 4,270-level. Comply with-through into the top of the week may prime shares for an prolonged breakout to subsequent all-time highs. That stated, high-impact occasion threat posed by the upcoming launch of month-to-month PCE inflation information may spoil the rally by shares if the information is reported materially hotter-than-expected.
— Written by Wealthy Dvorak, Analyst for DailyFX.com
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