SPRINGFIELD, Mass. (WWLP) – As the country continues to reopen and vaccines roll out, economic recovery is now reflecting in the stock market.
The Dow Jones Industrial Average and the S&P 500 both closed at record highs on Monday.
Financial advisor Mark Teed of Raymond James Financial says one of the reasons is because of the strong US job growth in March.
“Because the economy is growing so fast, and so much faster than expected the investors are trying to catch up with what the economic news is so all of a sudden all of the conditions have lined up perfectly and things look fantastic going forward,” Teed told 22News.
The Labor Department reported that payrolls surged to 916,000 in March, the highest since August of 2020 and unemployment fell by 6 percent, surpassing economists predictions.
“It’s blowing through all of the predications, right now it’s so far ahead of where it was expected to be at this point and that’s why the market is good and now we know April to September, October quarter is going to be the best we’ve ever had in this country,” Teed said.
If you are deciding whether to invest, Teed suggests people should be in the stock market now for the next year, because the stock market would benefit from President Joe Biden’s $2 trillion investment in the nation’s infrastructure, if passed.
Teed also told 22News that the stimulus checks are a part of this surge. He says people are spending them and its stimulating the economy.