Here are today’s market moves:
S&P 500 up 0.29% to 3,974.12
Dow Jones up 0.58% to 33,015.37
Nasdaq up 0.40% to 13,525.20
Gold: $1,745
Bitcoin: $57,848
US10Y: 1.646%
Oil: $64.43
What Happened?
Stocks rose to record highs after the Federal Reserve made it clear that they intend to keep interest rates near zero at least through 2023 despite concerns about rising inflation.
The Dow Jones Industrial Average gained 0.58%, closing above 33,000 for the first time. The S&P 500 climbed 0.29% to 3,974 – a record high.
The Fed predicts a fast economic recovery from the coronavirus pandemic and said that they will continue to provide support until the economy reaches maximum employment and inflation averages 2% for an extended period of time.
Economists recently have raised their projections for 2021 economic growth due to the $1.9 trillion stimulus package and an acceleration of covid-19 vaccinations.
The Nasdaq is still 5% off its highs. As the economy begins to reopen, investors seem to be rotating out of “pandemic” stocks (work from home + tech stocks) into sectors that are expected to rebound with the economy, such as energy and banks.
What Else?
This Week
Monday: Earnings expected from H&M.
Tuesday: Earnings expected from Coupa and Volkswagen.
Wednesday: Earnings expected from Lennar; Fed policy meeting – Jerome Powell is likely to reiterate his no-tightening policy stance.
Thursday: Earnings expected from Dollar General, FedEx, and Nike; Weekly jobless claims.
Friday: Earnings expected from BRP.