The American stock index of the wide market the S&P 500 reached a record level. What was this all-time high and what events provoked such growth? I have the answers and will share them with you right now.
The S&P 500 got over 4,000 points
On March 31st, the S&P 500 got maximally close to 4,000 points. At the closing of trades, it reached 3972.89, growing by 0.36%.
On April 1st, the index of American companies with the largest capitalization reached over 4,000 points first time in history. That day, it grew by 1.18% and secured at 4019.87 points.
What provoked such growth of the S&P 500?
Analysts say that the record was set thanks to Joe Biden's speech about a large-scale 8-year modernization program of the country's infrastructure. The budget is giving 2.3 trillion USD for it.
At the start, the money is planned to be distributed as follows: renewal of transport infrastructure — $621 billion, support of the disabled and elderly — $400 billion, industry development — $300 billion, construction of available dwelling — $213 billion, the extension of the broadband network — $100 billion.
Optimistic forecasts for the American economy development support the shares of the tech sector and they, in turn, pull the index up.
IT shares growing on Wednesday and Thursday
- Nvidia (NASDAQ: NVDA) — +7.3% to $552.47
- Microsoft (NASDAQ: MSFT) — +4.5% to $242.35
- Alphabet (NASDAQ: GOOGL) — +4.1% to $2129.78
- Facebook (NASDAQ: FB) — +3.7% to $298.66
- Amazon (NASDAQ: AAPL) — +2.6% to $123
- Intel (NASDAQ: INTC) — +1.2% to $64.55
Did other indices also grow?
On April 1st, NASDAQ Composite grew by 1.76% and reached 13480.11 points. The Dow Jones Industrial Average stopped its slow but steady 2-day decline and grew by 0.52% to 33153.21 points.
In March, the S&P 500 grew by 4.2% or 161.74 points. Since the beginning of 2020, it has grown by 263.8 points, which is an over 7% surplus. According to Bloomberg, Sanford C. Berstein investment company experts forecast growth to 8,000 in the nearest decade.
US President Joe Biden announced a large-scale money inflow in the national economy. It is planned to devote $2 trillion for the renewal of industry and the infrastructure of the country.
Thanks to such announcements, the shares of American IT companies started growing and pulled the S&P 500 up. This is how it managed to grow over 4,000 for the first time in its history.
What else to read about stock indices on R Blog?
- Tesla Stocks: What's Going On?
- How to trade stocks in 2021. Beginners Guide
- Strongest Growth After Slump In March: S&P 500 Stocks Rating
- NASDAQ-100: How to Invest or Trade the Index