Overcoming a rocky start, stocks rallied into the close of a holiday-shortened week of trading as technology shares staged a powerful recovery and investors reacted positively to President Biden’s infrastructure spending proposal. The Dow Jones Industrial Average gained 0.24%, while the Standard & Poor’s 500 picked up 1.14%. The tech-heavy Nasdaq Composite index rose 2.60%. The MSCI EAFE index, which tracks developed overseas stock markets, slipped 0.43%.1,2,3
S&P 500 Hits 4,000
Monday opened with two banks reporting they face losses due to the default of a small U.S. hedge fund. That news, combined with rising yields, higher new cases of COVID-19, and a public warning of new virus variants, started the week off on an unsettled note.4
Despite the shaky start, upbeat economic reports helped spark a rally that was paced by gains in the technology sector. The market also reacted positively on Wednesday to the introduction of a $1.9 trillion infrastructure proposal.
Stocks closed out the week with an exclamation mark, with the S&P 500 Index closing above 4,000 for the first time.5
Hedge Fund Woes
Last week’s trading opened on news that a U.S.-based investor was forced to unwind positions in multiple Chinese technology companies and American media holdings.
A number of large banks saw their share prices fall early in the week, reflecting concerns about their exposure to the hedge fund losses. Meanwhile, investors grappled with whether this was a one-off event or the opening act for additional hedge fund issues. As the week wore on, it appeared the hedge-fund issues were an isolated event.4
More Digital Choices Means Contact-Free Filing
The IRS is making it easier to file your taxes contact-free.Forms offer an electronic signature choice, meaning that tax professionals can conduct remote transactions.
To allow your tax professional to use the electronic signature, you must fill out Form 2848, Power of Attorney and Declaration of Representative. This form is a written authorization appointing the tax professional to represent the taxpayer before the IRS, including performing certain acts on the taxpayer's behalf. These acts can include an e-signature.
* This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.
Tip adapted from IRS.gov6
Footnotes and Sources
2. The Wall Street Journal, April 1, 2021
3. The Wall Street Journal, April 1, 2021
4. Fortune.com, March 29, 2021
5. CNBC, April 1, 2021
6. IRS.gov, February 2, 2021
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Weekly Market Insights: S&P 500 Rises Above 4,000
April 05, 2021