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The S&P 500 rose to another record high on Thursday amid a strong rally in major technology stocks.
The broad equity benchmark gained 0.3% to hit an all-time high after closing at a record in the previous session. The tech-heavy Nasdaq Composite rallied 0.9% as the FAANG shares of Facebook, Amazon, Apple, Netflix and Google-parent Alphabet were all about 1% higher. The Dow Jones Industrial Average was flat.
Investors processed a worse-than-expected reading on the latest weekly jobless claims. A total of 744,000 Americans filed for unemployment benefits for the first time during the week ended April 3, the Labor Department said Thursday. Economists polled by Dow Jones expect first-time claims to total 694,000.
“The economy is continuing to improve, although it’s an uneven recovery both in terms of the job market,” said Chris Zaccarelli, CIO at Independent Advisor Alliance. “We expect the market to keep moving slowly higher on good economic news, but since most of that news is already priced in, a big move higher will only happen if there is a significant bump to the upside.”
President Joe Biden spoke on Wednesday from Washington about his administration’s $2 trillion infrastructure plan that includes a corporate tax rate hike to 28% and noted that he is willing to negotiate on the proposed tax increase.
The proposed increase to the corporate tax is thought to be a key source of tax revenue for the White House infrastructure plan and is a non-starter for Republicans, who say they are concerned about tax increases as the U.S. economy emerges from the Covid-19 pandemic.
Fiscal support is considered a key driver of the past month’s equity records and strong economic data, including a stronger-than-expected March jobs report. The S&P 500, Dow industrials and Nasdaq Composite are all coming off their fourth straight quarter of gains as the economic recovery from Covid-19 accelerates. Continue reading here: www.cnbc.com