Skip to main content

Dow Jones, S&P 500, and Nasdaq advanced as Biden unveils $2.25 trillion stimulus

By: Invezz
Dow Jones, S&P 500, and Nasdaq advanced as Biden unveils $2.25 trillion stimulus

The U.S. stock market advanced last week as investors remain optimistic after President Joe Biden unveiled a $2.25 trillion spending program focused on jobs and infrastructure. Another positive news is that the U.S. economy added 916,000 jobs in March while the unemployment rate fell to 6.0%.

This indicates that the U.S. economy continues to recover from the pandemic, and investors stayed focus on stocks that could benefit from a growing economy.

“These improvements in the labor market reflect the continued resumption of economic activity that had been curtailed due to the coronavirus (COVID-19) pandemic. Job growth was widespread in March, led by gains in leisure and hospitality, public and private education and construction,” the Labor Department said.

The leisure and hospitality segment saw an increase of 280,000 jobs while the construction industry added 110,000 jobs in March. About 9.7 million people are still unemployed in the U.S., but this number could decrease once the pandemic is over.

The March employment figures were much better than anticipated, but inflation fears rise on Biden’s spending plan. The U.S. president Joe Biden announced details of his “Build Back Better” plan, which includes $2.25 trillion for infrastructure spending across the country.

The Federal Reserve may not worry about the possibility of higher inflation, but higher inflation expectations will maintain government debt yields up for the upcoming period.

S&P 500 up 1.1% on a weekly basis

For the week, S&P 500 (SPX) booked a 1.1% increase and closed at 4,019 points.

Data source: tradingview.com

S&P 500 advanced above 4,000 resistance last trading week, but if the price falls below 3,800 points, it would be a strong “sell” signal, and we have the open way to 3,700 points.

DJIA up  0.2% on a weekly basis

The Dow Jones Industrial Average (DJIA) advanced 0.2% for the week and closed at 33,153 points.

Data source: tradingview.com

If the price jumps above 33,500 points, it would be a bullish confirmation for Dow Jones Industrial Average (DJIA). On the other side, if the price falls below 32,000 points, it would be a firm “sell” signal, and the next target could be around 31,000 points.

Nasdaq Composite up 2.6% on a weekly basis

 The Nasdaq Composite (COMP) gained 2.6% on a weekly basis and closed at 13,480 points.

Data source: tradingview.com

If the price jumps above 13,700 points, it would be a “buy “signal for Nasdaq Composite, but if the price falls below the 13,000 support level, it would be a strong “sell” signal, and we have the open way to 12,500 points.

Summary

Dow Jones rose 0.2% for the week, the S&P 500 1.1%, Nasdaq 2.6%, and all three indices remain in a bull market. The U.S. economy added 916,000 jobs in March while the unemployment rate fell to 6.0%.

The post Dow Jones, S&P 500, and Nasdaq advanced as Biden unveils $2.25 trillion stimulus appeared first on Invezz.

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.