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Thursday Ends Green with the S&P 500 Breaking 4,000 points for the First Time in History

On Thursday, April 1st, 2021, the S&P 500 index broke the 4,000 point milestone, rallying to 4,010 points after market close. The two other major indices, the Nasdaq and the Dow Jones Industrial Average climbed 1.70% and 0.52% respectively by the end of the day, finishing the week with strong upward momentum. Investors are getting ready to embrace the Easter break, as the market would not be open on Good Friday, April 2nd. 

Experts of Wall Street analysts believe that the upward movement of this week was likely caused by the release of the detailed spending plans for the $2.25 trillion stimulus bill proposed by President Biden, in addition to the high hopes of Friday’s good unemployment numbers, which are expected show one of the highest recoveries in history. The process of vaccination for the American public has also been going well, with many states lowering age requirements of vaccination. Governor Newsom of California reported that people over the age of 16 would likely start receiving their shots in the middle of April, fueling the prospects of reopening. 

In just 4 months entering 2021, the S&P 500 has already grown 6.5%, thanks to capital injected into industrials, energy, and financials as hopes of easing regulations increase with the doses of vaccines injected every day. On the contrary, the Nasdaq has only climbed 1.5% since the start of this year as some of the hottest sectors during the pandemic slow down. Currently, the Nasdaq is still on its way to new highs, with big stocks like Apple remaining flat for over 2 months. Zoom, a video meeting company whose stock has been popularized during the pandemic due to remote learning and working, is down over 40% from its highs in late 2020. 

Many respectable figures in the financial field agree that the new milestone is a very strong confirmation that the market would be much more stable than before. The new record would serve as a new foundation for the indices, as certain individuals say. It is relatively safe to say that the market is less volatile than before. However, if you’re thinking about investing into the markets, be aware of the risks as we are still riding on top of the curve.

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