Stocks rose on Tuesday, pushing the Dow and S&P 500 to new records, as investors continued to shrug off rising Covid cases from the delta variant.
A $1 trillion bipartisan infrastructure bill was set to pass the Senate and that may help soothe concerns about slowing economic growth as pandemic drags on. The yield on the 10-year yield bounced on Tuesday.
The Dow Jones Industrial Average rose about 130 points to hit a new intraday high. The S&P 500 was flat after hitting intraday record earlier in the session. Meanwhile, the Nasdaq Composite dipped 0.4%.
Bank stocks rose amid the jump in bond yields, yet investors dumped technology shares as rates bounced. Goldman Sachs jumped nearly 2%. Wells Fargo and Bank of America rose more than 1.5% each. Yet, the so-called FANNG names were all in the red.
Energy stocks rebounded on Tuesday, after leading the market’s declines on Monday spurred by a drop in oil prices. Exxon Mobil and Chevron popped more than 1% on Tuesday and Diamondback Energy rebounded more than 2%. U.S. oil prices rose 1.6% on Tuesday.
Stocks tied to the economic reopening also made back some of their losses from Monday. Norwegian Cruise Line gained 2% and American Airlines rose 1%.
The Senate could pass a $1 trillion bipartisan infrastructure bill as soon as Tuesday. The plan, which includes $550 billion in new spending on transportation and broadband, could help give the economy a boost as peak growth slows following the reopening from the pandemic.
During regular trading on Monday, the Dow fell more than 100 points amid fears that a wave of Covid cases could lead to a demand slowdown. The S&P 500 traded down 0.1% and the Nasdaq Composite rose 0.16%.
AMC‘s stock jumped 4.7% after reporting a lower loss than expected. The company also announced it would begin accepting bitcoin at all U.S. locations this year.
Earnings season continues Tuesday, with Coinbase set to report. Its stock, which trades closely with the price of bitcoin, dropped 3% Tuesday. SoftBank and Sysco are also set to report.
The price of bitcoin fell 1.5% on Tuesday after jumping 5% on Monday to its highest price since May.
Investors await the consumer price index and producer price index data, both of which measure inflation and are scheduled to come out Wednesday and Thursday, respectively. A handful of central bank speakers, including Chicago Fed President Charles Evans and Kansas City Fed President Esther George, are also expected this week. Investors will be listening for clues on how the Fed is approaching dialing back its bond purchases.
