For the week ending April 3rd - the S&P 500 increased by 1.1%, the NASDAQ increased by 2.6% and the Dow Jones Industrial Average increased by 0.2%. The S&P 500 index crossed the 4,000 mark for the first time ever on Thursday, April 1st. 10-year U.S. Treasury Yield Rate stayed around 1.72% through Friday, April 2nd. The week ended early in the stock market due to Good Friday holiday on April 2nd.
Biden Unveils Infrastructure Plan
President Biden announced a massive $2.3 trillion infrastructure spending plan - American Jobs Plan on Wednesday, March 31st 2021. According to the plan, the spending would be financed by raising corporate taxes from 21% to 28%, partially undoing the tax cuts brought upon by the Tax Cuts and Jobs Act in 2017 during the Trump Administration. $621 billion, the biggest chunk, is set aside in the plan for modernizing transportation infrastructure and electrification of vehicles.
Nomura Takes Massive Hit From Archegos Failure
Japanese Bank Nomura (ticker: $NMR) announced that it expects to
a loss of about $2 billion from transactions with a U.S. client
on Monday, March 29th in an 8-K SEC filing. Market participants believe that this U.S. client is none other than Bill Hwang's Archegos Capital Management. Earlier this week, Unhedged published a research note that explores how hedge fund manager Bill Hwang's $80 billion book was force-liquidated and multiple banks including Nomura suffered massive losses last Friday, March 28th.
TSM To Invest $100 Billion To Build More Semiconductor Fabs
Taiwan Semiconductor Manufacturing Company (ticker: $TSM) announced that the company
will invest $100 billion over the period of next three years
to raise capacity of its semiconductor fabs on Thursday, April 1st in an 8-K SEC filing. The company mentioned this investment is a response to strong demand of their semiconductor chips due to multi-year trends in 5G and HPC (high performance computing) technologies.
U.S. Bureau of Labor Statistics released Non-farm Payroll data for March 2021 on Friday, April 2nd and it showed U.S. economy added 916,000 jobs (much higher than the gain of 647,000 jobs expected by analysts). Increase in the jobs was expected as COVID-19 as the pace of vaccination has ramped up significantly across the all the states.