President Biden’s plan to spend an unprecedented $3 trillion on infrastructure is expected to meet with an enthusiastic response on Wall Street, with construction and engineering stocks most likely to take off.
The plan, according to a market analysis by the financial services company Olsen & Associates, is “fueling optimism that the U.S. economy will bounce back much faster than initially expected.”
Analysts in recent weeks have already been pointing to a strong 2021 stock market fueled by the hoped-for end of the pandemic and continued job growth.
According to a report just published by the site Motley Fool the “catalysts are in place for a major bull market to take shape under the new administration.”
The boom is also in no small way related to the fact of another big round of stimulus spending, as well as “ongoing quantitative easing measures from the nation’s central bank.”
An initial gain in the Standard & Poor’s index came earlier this month with new Labor Department numbers showing the creation of some 379,000 jobs, over an anticipated 200,000, prompting economists from the Bank of America to note that the “U.S. labor market is beginning to heal.”
A new Bank of America analysis is specifically regarding as a good investment companies which manufacture semiconductors, in response to a push for more broadband construction in the President’s infrastructure plan.
Also, companies making materials and parts for electric vehicle systems and charging stations could be poised for gains, according to the analysis, as well as companies involved in clean energy production.
By Garry Boulard
