S&P 500 Index Set Record | R Blog RU

The US stock market index of the broad market S&P 500 has reached an all-time high. What mark was passed for the first time in history, and what events triggered the growth? We already have answers to these important questions – we are sharing them right now.

S&P 500 has exceeded 4,000 points

On March 31, the S&P 500 index approached as close as possible to 4,000 points. At the close of trading, it reached 3,972.89, up 0.36%.

On April 1, for the first time in its history, the stock index, which takes into account the quotes of American companies with the largest capitalization, exceeded 4,000. On that day, it increased by 1.18% and was fixed at 4,019.87 points.

What caused the rise in the S&P 500?

Analysts point out that this record figure was achieved thanks to statements by US President Joe Biden about a large-scale eight-year program to modernize the country’s industry and infrastructure. From the budget for the implementation of this ambitious plan, we are ready to allocate $ 2.3 trillion.

At the initial stages, it is planned to distribute funds in the following way: renovation of transport infrastructure – $ 621 billion, support for the disabled and the elderly – $ 400 billion, industrial development – $ 300 billion, creation of affordable housing – $ 213 billion, expansion of the broadband network – $ 100 billion.

Optimistic forecasts for the American economy have a positive effect on the quotes of the technology sector, and those, in turn, pull the index upward.

The rise in the price of shares of the IT sector for Wednesday-Thursday

  • Nvidia (NASDAQ: NVDA) – + 7.3%, up to $ 552.47
  • Microsoft (NASDAQ: MSFT) – + 4.5%, up to $ 242.35
  • Alphabet (NASDAQ: GOOGL) – + 4.1%, up to $ 2,129.78
  • Facebook (NASDAQ: FB) – + 3.7%, up $ 298.66
  • Amazon (NASDAQ: AMZN) – + 3.5%, up to $ 3,161
  • Apple (NASDAQ: AAPL) – + 2.6%, to $ 123
  • Intel (NASDAQ: INTC) – + 1.2%, up to $ 64.55

Are other indices also higher?

On April 1, the NASDAQ Composite gained 1.76% and entered the level of 13,480.11 points. The Dow Jones Industrial Average interrupted a slow but steady two-day downward movement and increased its reading by 0.52% to 33,153.21 points.

For March, the S&P 500 rose 4.2% or 161.74 points. Since the beginning of 2020, he managed to add 263.8 points, and this is already an increase of slightly more than 7%. According to Bloomberg, experts at the investment company Sanford C. Bernstein predict an increase in the index to 8,000 over the next decade.

Summing up the result

US President Joe Biden announced a massive investment in the national economy. It is planned to allocate more than $ 2 trillion to upgrade the country’s industrial sector and infrastructure.

Against the backdrop of such statements, shares of American technology companies began to move upward and pulled the S&P 500 with them. Thus, this index managed to cross the 4,000 point mark for the first time in its history.

What else to read about stock indices on the R Blog?

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