There is renewed investor confidence in the US economy after a successful roll-out of vaccinations, according to State Street.
Over 216 million doses had administered in the US, far beyond President Biden’s initial target of having 100 million people vaccinated within his first 100 days, and better than the majority of countries globally.
“That target was actually met on 19 March but, with the lack of tweets, which was the primary communication medium adopted by his predecessor, you might think that Biden has not really done a lot since coming into power,” the firm said in its multi-asset funds market report.
This now left the US in the position of being able to help supply vaccines to both Canada and Mexico.
As well as the COVID-19 vaccine success, investors were also optimistic after the announcement of a US$2.3 trillion ($2.96 trillion) infrastructure spending plan which would revitalise the US transport, electricity, and broadband systems.
In its multi-asset update, Raf Choudhury, head of investment strategy and research, said: “A large part of the economic recovery rests on mass vaccinations which are well under way. But, in the meantime, the economic stimulus proposal Biden released on 14 January is focused on helping to see the economy through in the interim.
“In fact, investors were buoyed by the new US$2.3 trillion infrastructure spending plan and growing optimism about the economy. The latest highs in the US market point to a renewed confidence among investors that the economic recovery is gaining pace.”