Stocks rose on Tuesday, pushing the Dow and S&P 500 to new records, as the Senate’s passage of a $1 trillion infrastructure package appeared to give a boost to stocks tied to economic growth.
The Dow Jones Industrial Average rose about 159 points to hit a new intraday high, led by Caterpillar. The S&P 500 rose 0.1% after hitting intraday record earlier in the session. Meanwhile, the Nasdaq Composite dipped 0.6%, as a rise in Treasury yields weighed on tech stocks.
The Senate’s infrastructure plan, which includes $550 billion in new spending on transportation and broadband, is expected to help give the economy a boost as peak growth slows following the reopening from the pandemic.
Stocks that potentially benefit from the Senate bill moved higher, with steelmaker Nucor jumping more than 9%. Broader infrastructure exchange traded funds, including the iShares U.S. Infrastructure ETF and the Global X U.S. Infrastructure Development ETF, were also outperforming the broader market.
Bank stocks rose amid the jump in bond yields, yet investors dumped technology shares as rates bounced. Wells Fargo jumped 2%, while Goldman Sachs and Bank of America rose more than 1% each. However, the so-called FAANG 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 about 2%. U.S. oil prices rose more than 2%.
Stocks tied to the economic reopening also made back some of their losses from Monday. Norwegian Cruise Line gained 9% and American Airlines rose 3 morning%.
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 on Tuesday morning before reversing course later the day. The company reported a lower loss than expected for the second quarter announced it would begin accepting bitcoin at all U.S. locations this year.
Earnings season continues after the bell, 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.
