New York, March 9 (AFP/APP): Tech shares bounced back early Tuesday as markets await final passage of President Joe Biden’s $1.9 trillion economic relief package.
The tech-rich Nasdaq Composite Index, a big loser Monday and in other recent sessions as investor steer money to industrial and travel companies, jumped 2.6 percent to 12,941.28. About 20 minutes into trading, the Dow Jones Industrial Average gained 0.5 percent to 31,975.23, while the broad-based S&P 500 advanced 1.3 percent to 3,871.73.
Investors have pencilled in a jump in economic growth throughout 2021, boosted in part by Biden’s plan, which includes stimulus checks of up to $1,400 to most US households and extensions of unemployment benefits, among other items. The OECD sharply raised its 2021 global growth forecast, projecting the global economy will expand by 5.6 percent, an increase of 1.4 percentage points from its December forecast, and saying the outlook has “improved markedly in recent months.”
Besides fiscal spending packages, drivers of the better outlook include adoption of coronavirus vaccines and accommodative monetary policy. However, stocks have been pressured in recent sessions by worries rising inflation will compel the Federal Reserve and other central banks to tighten policy.
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