The Washington PostDemocracy Dies in Darkness

Biden’s $2.3 trillion spending plan spurs market gains

Placeholder while article actions load

U.S. equities extended their record climb in a holiday-shortened week, fueled by President Biden’s new $2.3 trillion spending plan, which was seen as a net positive for infrastructure companies.

The S&P 500 index ended the short trading week at 4,020 — the first time the benchmark has ever closed above 4,000 — thanks to advances in consumer discretionary and technology stocks. The tech-heavy Nasdaq 100 had its best gain in two months, beating the Dow Jones industrial average.

Treasury yields rose to highs unseen in over a year. Financial stocks fell following banks’ forced selling of more than $20 billion of apparently swap-linked shares at Bill Hwang’s Archegos Capital Management. On the bright side, March data showed private companies have added the most jobs in six months, filling investors with optimism.

“There’s still more room for a lot of these stocks to grow in terms of the greater benefit that a faster economic recovery is going to result in,” Greg Bassuk, CEO at AXS Investments LLC, said in a phone interview. “But we also are urging investors to remain cautious because we are also seeing those days where we’re having big dips.”

The Treasury will sell 13-week and 26-week bills on Monday. The government will also auction eight-week and four-week bills on Thursday.

— Bloomberg News