Global stock markets were relatively flat mid-week ahead of two key events on Wednesday. First, the Federal Reserve is set to give its most recent policy announcement followed by a press conference on Wednesday afternoon. Second, President Joe Biden will unveil the $1.8 trillion “American Families” plan to expand educational opportunities and childcare for families, funded in part by the largest tax increases on wealthy Americans in decades. Biden’s third major legislative proposal combines $1 trillion in spending with $800 billion in tax cuts and credits for middle- and lower-income families. The plan would make pre-kindergarten and community college free across the country, extend the child tax credit through 2025 and make permanent an expansion of the earned income tax credit to childless adults with low incomes, provide direct support to families for childcare, finance teacher training, and create a national paid family leave program. (Bloomberg). Earnings continue to remain top of mind, with several notable companies including Apple and Facebook reporting this week. On the data front, the first estimate of first-quarter gross domestic product (GDP) will be coming, with consensus estimates for around 6.5% growth, up from 4.3% in the final quarter of 2020.
Source: GSAM, CNBC, JPM, Bloomberg, FactorInvestor
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