Stock Market Today

Stock Market Today: No Foolin': S&P 500 Cracks 4,000

The S&P 500 hit, and finished above, the 4,000 mark for the first time in the wake of robust manufacturing data and infrastructure optimism.

The stock market closed out the holiday-shortened trading week with yet another surge from the technology sector, but April Fools’ Day gains were more widespread than Wednesday's tech-only party.

The S&P 500 eclipsed 4,000 for the first time on optimism gleaned from the Institute for Supply Management's national factory index reading for March, which jumped to 64.7 from 60.8 a month ago. That marks the index's strongest reading since December 1983 and easily beat the Reuters estimate of 61.3.

While large tech and communications stocks such as Salesforce.com (CRM, +3.3%), Nvidia (NVDA, +3.5%) and Alphabet (GOOGL, +3.3%) improved on the day, cyclical sectors such as energy (+2.5%) and financials (+1.2%) also performed well as investors absorbed President Joe Biden's new infrastructure plan.

The S&P 500 gained 1.2% to finish at a record 4,019. The Dow Jones Industrial Average (+0.5% to 33,153), Nasdaq Composite (+1.8% to 13,480) and small-cap Russell 2000 (+1.5% to 2,253) all finished in the black, too.

Other action in the stock market today:

  • U.S. crude oil futures rebounded with a 3.9% jump to $61.45 per barrel.
  • Gold futures also improved, gaining 0.8% to $1,728.40 per ounce.
  • Bitcoin prices inched 0.2% higher to $58,912. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m. each trading day.)
stock chart for 040121

YCharts

A quick reminder: Good Friday is a stock market holiday, but the Bureau of Labor Statistics will still release the March Employment Situation report tomorrow.

The Other Winners From Infrastructure Spending

While the infrastructure plan surely will help stocks in some way, the timing of passage and the scope of the final plan is still high in the air. 

"Negotiations always take some time, and the $1.9T stimulus plan was an exception to the norm. Biden will likely struggle to gain bipartisan support," says Gene Goldman, chief investment officer at Cetera Investment Management. "Most likely scenario is the infrastructure plan is watered down a bit and included in the budget planning process in the next fiscal year."

Goldman also lays out a few likely winners in the event The American Jobs Plan passes, and, naturally, some of them include the various infrastructure plays we've discussed of late. But he also sees potential for semiconductor stocks, which already are benefiting from high demand and would be increasingly necessary in a bill that emphasizes newer technologies.

He also likes small-cap stocks, given their high correlation to economic growth. After all, smaller companies tend to derive more of their revenues domestically than their larger brethren, so a snap-back in the American economy would be a direct shot in the arm.

If so, that bodes well for these 11 smaller-sized companies, which have the confidence of Wall Street's analyst community.

Kyle Woodley was long CRM and NVDA as of this writing.

Most Popular

How to Use Your Estate Plan to Save on Taxes While You’re Still Alive!
estate planning

How to Use Your Estate Plan to Save on Taxes While You’re Still Alive!

Upstream basis planning is a trust strategy that can save wealthy people on their capital gains taxes and income taxes associated with highly apprecia…
July 3, 2022
Your Guide to Roth Conversions
Special Report
Tax Breaks

Your Guide to Roth Conversions

A Kiplinger Special Report
February 25, 2021
The 15 Best Growth Stocks for the Rest of 2022
growth stocks

The 15 Best Growth Stocks for the Rest of 2022

A sharp selloff in growth stocks this year creates opportunity for keen investors. Here are 15 top-rated picks to consider in the second half of 2022.
June 28, 2022

Recommended

Stock Market Today (7/1/22): Stocks Catch a Second Wind to Start Second Half
Stock Market Today

Stock Market Today (7/1/22): Stocks Catch a Second Wind to Start Second Half

Despite a dour ISM manufacturing index reading Friday, stocks broadly managed to pull themselves together and finish well in the black.
July 1, 2022
Stock Market Today (6/30/22): S&P Suffers Worst First Half Since 1970
Stock Market Today

Stock Market Today (6/30/22): S&P Suffers Worst First Half Since 1970

The major indexes produced a familiar result Thursday, finishing in the red to close out a dreary first six months of the year.
June 30, 2022
Can AI Beat the Market? 10 Stocks to Watch
stocks

Can AI Beat the Market? 10 Stocks to Watch

An artificial intelligence (AI) system identifying high-potential equities has been sharp in the past. Here are its 10 top stocks to watch over the ne…
June 30, 2022
Stock Market Today (6/29/22): Markets Steady, But Bed Bath, Cruise Lines Tumble
Stock Market Today

Stock Market Today (6/29/22): Markets Steady, But Bed Bath, Cruise Lines Tumble

The calmest market day of 2022 wasn't nearly so pleasant for a few individual stocks, including retailer BBBY and cruise operator CCL.
June 29, 2022