Stock futures were calm Sunday night as investors prepare themselves for potential high volatility this week as many predict the days ahead to be the busiest of the first quarter.
Among the many items on this week’s agenda include the debut of President Biden’s American Families Plan, the release of 1st Quarter corporate earnings reports and the latest Federal Reserve meeting.
Biden’s Meeting with Congress
Biden is set to meet with Congress during a joint session Wednesday night to review his proposed capital gains tax hike. The bill as written plans to pay for the further development infrastructure, healthcare and family support through the $1.8 trillion bill.
Following through on the plan as it currently stands would mean a capital gains hike to 39.6% (up from 20%) for those earning over $1 million a year. A decision that could be met with some hostility from Biden supporters including a long list of overpaid Hollywood royalty and America’s wealthiest such as Bezos, Musk, Gates and Buffett to name just a few.
On Wall Street last week, in anticipation of Biden’s upcoming tax hike, the S&P 500 went down by almost 1% suggesting some on Wall Street continue to have reservations deciding where to stand when it comes to how this bill will affect their investments.
1st Quarter Earnings Reports
Another reason many on Wall Street have been eagerly awaiting the last week in April is the much-anticipated release of outgoing corporate earnings, including such big names as Tesla, Amazon, Microsoft, Facebook, Twitter and Apple among others.
Overall, of the companies listed on the S&P 500, a third of them will be releasing their reported earnings for the first quarter of 2021 this week.
With the globe slowly working its way back to a sense of normalcy during the early part of 2021, many investors and board members expect some of this week’s earnings reports to reflect the rising costs of doing business and include discussions on overall expansion as many businesses reopen their doors.
Powell Set to Speak
The U.S. Federal Reserve is also set to have a meeting this Wednesday to discuss the possibilities of economic restructuring as we enter into this new phase of the pandemic.
While most aren’t expecting much change to come out of Wednesday’s meeting, investors will continue to keep a sharp eye on Fed. Chair Jerome Powell to get the latest economic details as he addresses the press after the conclusion of Wednesday’s meeting.
You’re Not Alone…
Needless to say, this is expected to be a big week on Wall Street. But don’t worry… the DTI team will be here with you all the way through. Helping you keep track of the info you need to know while working hard to keep you and your investments protected in the days ahead.
If you’re interested in starting your trading week off as knowledgeable as possible, we encourage you to sit down with DTI founder and head trader Tom Busby below as he dives into his take on the days ahead and how you should be preparing going into what’s bound to be an interesting week.