The market remained mostly calm this week, as index values trickled slightly upward due to positive economic data and a new batch of stimulus checks. Senate Republicans also released a counteroffer to President Biden’s infrastructure plan, indicating there is much work to be done to come to an agreeable compromise between the two parties.
Economic Data – Several pieces of data were released this week, as both initial and continuing jobless claims fell well below expectations. Consumer confidence fell slightly (see below) but still sits above pre-pandemic levels.
Infrastructure Counteroffer – Senate Republicans countered President Biden’s infrastructure bill with a proposal of their own, with a total price tag of $928B, roughly $600B less than President Biden’s most recent offer. The GOP proposal still budgets for broad-based infrastructure spending but eliminated spending on home health care and electric vehicle rebates. While the two sides are still far apart, the White House said it hopes to see progress in bipartisan talks by Memorial Day.
Stimulus Checks – A new batch of $1,400 stimulus checks have been sent out, bringing the total number of payments to 167 million, or approximately $391 billion. Most of the recent round of checks were directed at taxpayers who are due additional money, so-called “plus-up” payments now that their tax returns have been processed.
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