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Weekly Recap May 1st 2021
An article by • Published May 3, 2021

Weekly Recap: May 1st 2021

For the week ending May 1st 2021 - the S&P 500 remained unchanged, the NASDAQ declined by 0.4% and the Dow Jones Industrial Average declined by 0.5%. The 10-year U.S. Treasury Yield Rate rose again to 1.65% through Friday, April 30th. COVID-19 situation in India has worsened, daily case count has crossed 400,000 on Saturday, May 1st, in the second wave of the pandemic in the nation. Big Tech Earnings Roundup Big Tech companies - Apple (ticker:
), Alphabet (ticker:
​), Facebook (ticker:
), Amazon (ticker:
​) and Microsoft (ticker:
​) reported earnings this week. All of them reported impressive growth in revenues with solid (profit) margins. Be it congressional hearings, antitrust investigations, huge fines from regulators from authorities across the globe or even a global pandemic has been able to hamper the growth of their business.  Federal Reserve Kept The Rates Unchanged The U.S. Federal Reserve announced that Federal Open Market Committee (FOMC) kept Federal Funds Rate unchanged at the target range of 0%-0.25% on Wednesday, April 28th. In the press conference, after the FOMC meeting, Federal Reserve Chairman Jerome Powell in his speech emphasized that "With regard to interest rates, we [FOMC] continue to expect it will be appropriate to maintain the current 0 to ¼ percent target range for the federal funds rate until labor market conditions have reached levels consistent with the Committee’s assessment of maximum employment and inflation has risen to 2 percent and is on track to moderately exceed 2 percent for some time. I would note that a transitory rise in inflation above 2 percent this year would not meet this standard." Economic Updates: The U.S. Bureau of Labor Statistics released Personal Income data for March 2021 on Friday, April 30th. Personal Income in the U.S. increased by 21% on Month-over-Month (MoM) basis. This is the largest increase in personal income ever recorded. The jump is a result of increased benefits through stimulus checks and other payment to individuals from U.S. government through American Rescue Plan (ARP) Act. . The U.S. Bureau of Labor Statistics also released Personal Spending data for March  2021 on Friday, April 30th Personal Spending in the U.S. increased by 4.2% on Month-over-Month (MoM) basis. This is the biggest increase in personal spending since June, 2020. The rise in personal spending is a result of additional income in households due from an increased spending of U.S. government through American Rescue Plan (ARP) Act.