U.S. stocks climbed to record highs Thursday as the comeback in tech shares resumed, while the signing of additional fiscal stimulus gave sentiment a further boost.

The S&P 500 jumped 1% to 3,939.34, hitting a new closing high and retaking its previous record from Feb. 16.  

President Joe Biden signed a $1.9 trillion coronavirus relief package into law Thursday afternoon. The plan will send direct payments of up to $1,400 to most Americans, and will also put nearly $20 billion into Covid-19 vaccinations and $350 billion into state, local and tribal relief. The White House said Thursday that stimulus checks could start hitting bank accounts this weekend.

The 10-year Treasury yield, which had retreated from its recent high of 1.6%, was little changed at 1.52% on Thursday.

On the data front, investors cheered a slightly better-than-expected reading on weekly jobless claims. The Labor Department reported that first-time filings for unemployment insurance in the week ended March 6 totaled a seasonally adjusted 712,000, below the Dow Jones estimate of 725,000.

The economic reopening, coupled with additional fiscal stimulus, accelerated the rotation into more cyclical sectors, such as energy. The S&P 500 energy sector has been the biggest winner this year, up nearly 40% so far.

Plan A : Short if market failed to support above 3930. Targets are 3904, 3880 and 3849.

Plan B : Long if market supported firm above 3930. Targets are 3944, 3961 and 3981.
 

Futures contracts tied to the major U.S. stock indexes traded mixed early Friday after the S&P 500 closed at a record high and President Joe Biden signed landmark stimulus legislation.

The Nasdaq Composite climbed 2.5% to 13,398.67 amid a rotation back into tech. Tesla popped 4.7%, while Apple, Facebook, Alphabet and Netflix all advanced at least 3%.

The Nasdaq Composite dipped into correction territory on Monday, falling more than 10% from its recent high. Now the tech-heavy benchmark is about 5.5% off that high.

A quick rise in bond yields put pressure on the tech-heavy index earlier in March as investors shifted toward economically sensitive, cyclical stocks. Sharp increases in interest rates can put outsized pressure on high-growth tech stocks as they reduce the relative value of future profits.

Plan A : Short if market failed to support above 12937. Targets are 12897, 12855 and 12817.

Plan B : Long if market supported firm above 12937. Targets are 12965, 12999 and 13031. 

To subscribe to real time signal, email to us at futures.coin@gmail.com for details. Sign up today for March subscription.