Overnight, it was another mostly flat day for US stock markets. However, the local ASX 200 (ASX: XJO) is expected to rise.
The S&P 500 (INX) increased modestly, up 0.15%, and the Nasdaq 100 rose 0.3%.
A rally in the likes of Apple (NASDAQ: AAPL) stock and Alphabet (NASDAQ: GOOGL) stock drove the market with retailers and financials also doing well.
S&P 500 (INX) – 5 years
The US Federal Reserve continues to reiterate its willingness to extend Quantitative Easing and other support programs, confirming they will be in place for ‘some time’ even as the economy recovers.
Costings of the planned US tax hike from 21% to 28% were also outlined. They aim to fund the massive infrastructure spending program by raising US$2.5 trillion over fifteen years. The news isn’t expected to impact too many companies, in fact, the true focus is on bringing overseas income back to the US.
Investment bank JP Morgan (NYSE: JPM) rallied 1.7% after CEO Jamie Dimon released his annual shareholder letter, stating:
“I have little doubt that with excess savings, new stimulus savings, huge deficit spending, more QE, a new potential infrastructure bill, a successful vaccine and euphoria around the end of the pandemic, the US economy will likely boom”.
Let’s hope he is right!
