Thus, banking on these recent strengths, it’s prudent for investors to place bets on fundamentally sound stocks listed on the S&P 500 Index that are poised to scale upward along with the broader index. Employers added 253,000 new jobs in April, way more than analysts’ estimate of job additions of 180,000.Īt the same time, the jobless rate matched the lowest reading since 1969 as it came in at 3.4% for April, down from 3.5% in March, added the Labor Department (read more: 4 Stocks to Gain as U.S. Jobs were added at a strong clip last month and reversed a cooling trend. Let us also admit fears of an imminent recession got dashed, thanks to a stronger-than-expected labor market. took over the Silicon Valley Bank, reserve balances with Federal Reserve Banks did surge. Lest we forget, after the Federal Deposit Insurance Corp. However, the Federal Reserve has been pumping money into the banking system and has introduced a new Bank Term Funding Program that would protect the lenders in times of distress. This led to a contagion effect and, in the end, impacted various other regional lenders, such as Signature Bank and First Republic Bank. Meanwhile, run-on deposits led to the collapse of the Silicon Valley Bank. government won’t run out of cash to pay for its liabilities, thereby preventing the economy from heading into a recession. Kevin McCarthy himself said that it has been a “productive discussion,” which undoubtedly gave hope that the debt ceiling may be raised and the U.S. This is because President Joe Biden and House Speaker Kevin McCarthy ended their latest discussion over the debt ceiling crisis on an optimistic note. But for a brief period, the broader index did trade above the 4,200 level last week and is now well positioned to push above it in the near term.
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