Stocks continue to respond to a massive fiscal spend, that bubbled up very quickly, to combine with a Fed that appears to be signaling a continued low rate environment.
As we discussed over the past two days, the advancement of these spending packages had "Build Back Better" written all over it. It has been justified by a high inflation and (manufactured) negative growth first half.
Biden couldn't help himself but to admit it (that it's BBB) in a speech this afternoon.
Like it or not, this is more fuel on the fire.
This is a green light for a resumption of the rise in asset prices.
Below is a look at stocks.
This trendline representing the decline since March (when the Fed started rate liftoff) has broken.