Dow rises 160 points to close at a record after Senate passes $1 trillion infrastructure bill
10 Aug 2021
Stocks rose on Tuesday, pushing the Dow and S&P 500 to new records, after the Senate’s passage of a $1 trillion infrastructure package boosted stocks tied to economic growth.
The Dow Jones Industrial Average rose 162 points to close at a record high, led by Caterpillar, which gained 2.5%. The S&P 500 rose 0.1% and closed at a fresh record high. Meanwhile, the Nasdaq Composite dipped 0.5%, 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 9.6%. Broader infrastructure exchange traded funds, including the iShares U.S. Infrastructure ETF and the Global X U.S. Infrastructure Development ETF, also outperformed 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.
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.
The price of bitcoin fell 1.5% on Tuesday after jumping 5% on Monday to its highest price since May.
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.
— with reporting from CNBC’s Jesse Pound.