According to JPMorgan, in regard to the stock market, Joe Biden has had the best 100-day run for a first-term president in more than 75 years. Since the 2020 election, CNBC reports the S&P 500 is up more than 20%, adding that it’s up 10% since his inauguration. While the market has had a solid opening, investors and analysts are now questioning if the streak will continue. While they wait, investors will be watching the five major drives of stock prices: the rate of change in earnings, the stability of profit margins, the future of Biden’s legislative strategy, the Fed tapering and rate hikes, and the reopening and continued economic growth.
After a bullish start, here’s the stock market outlook for Biden’s next 100 days
If the stock market is considered a barometer of success, President Joe Biden’s first 100 days in office is starting off with a bang — a big bang.
Since the election, the S&P 500 is up more than 20%. Since his inauguration in January, it’s up 10%.
According to JPMorgan, that is the best 100-day run for a first-term president in more than 75 years. The only other one close was John F. Kennedy in 1963, who also saw a return north of 20%.
Investors, understandably, are more focused on the future. What will happen in the second 100 days? See what experts are saying, here.
CNN Business/Anneken Tappe
US economy soared in the first quarter, growing at a 6.4% rate
America is on the path to recovery and economic growth is rampant. But the pandemic recession has been severe and we’re still not done growing our way out of it.
US gross domestic product — the broadest measure of economic activity — grew at an annualized pace of 6.4% in the first three months of the year, adjusted for seasonal swings, the Commerce Department reported Thursday.
That was slightly better than economists had predicted, and a faster rate than the 4.3% recorded at the end of 2020. In GDP growth is a good sign that the US economy is moving in the right direction, even though growth has slowed from the enormous 33.4% annualized jump in the second quarter of 2020 when the economy started to reopen.
The government uses the ‘annualized’ rate, which assumed the quarterly growth rate would continue for a full year because it makes it easier to compare numbers of different periods of time.
Read about the work economists say lies ahead, here.
Yahoo! Finance/Emily McCormick
Stock futures rise after Biden unveils ambitious proposals, earnings top estimates
Stock futures pointed to a higher open Thursday morning as investors considered a batch of stronger-than-expected earnings results from major companies and a sweeping set of proposals from President Joe Biden aimed at revamping the country’s infrastructure and supporting families, children and students.
Contracts on the S&P 500 added 0.7%, and the index was on pace to open at an all-time high. Dow futures gained more than 150 points, or 0.5%, while contracts on the Nasdaq gained about 1%.
Traders considered Biden’s address to a joint session of Congress late Wednesday, during which he declared that “America is back on the move again” after a pandemic that devastated the U.S. economy and killed hundreds of thousands of individuals across the country. The address also served as a forum for him to tout his $2 trillion infrastructure plan and officially unveil a $1.8 trillion proposal aimed at supporting children, students and families, and which will be funded in part through tax increases on wealthy Americans.
Continue reading, here.