(MENAFN- Baystreet.ca) Equities Achieve New Highs on Spending Package
Advertisment
The Dow Jones Industrial Average jumped to a new intraday high Monday after Congress approved an infrastructure spending package.
The 30-stock index grabbed 154.11 points to 36,482.06.
The S&P 500 added 10.25 points to add to Friday's all-time high at 4,707.78,
The NASDAQ Composite hiked 38.61 points to 16,010.20.
The U.S. House of Representatives late Friday passed a more than $1-trillion infrastructure bill, sending the legislation to President Joe Biden for his signature. First passed by the Senate in August, the package would provide new funding for transportation, utilities and broadband, among other infrastructure projects.
Industrials and materials stocks rallied Monday with those names set to benefit from the spending package. The Global X U.S. Infrastructure Development exchange-traded fund hit a new all-time high dating back to its inception in 2017.
Construction equipment manufacturer Caterpillar led the Dow's rally with a 4% gain. Heavy equipment producer Deere saw its shares rise more than 2%. Nucor and Vulcan Materials each added more than 3%. United Rentals, Martin Marietta, Quanta and Jacobs Engineering were among the other infrastructure-related gainers.
The passage of the infrastructure stimulus, an improving COVID situation in the U.S., and a better-than-expected labor market reading boosted investor confidence in the economic recovery. The October jobs report came in Friday better than economists expected as U.S. payrolls added 531,000 jobs last month, according to the U.S. Labor Department.
Prices for 10-year Treasurys sagged, raising yields to 1.48% from Friday's 1.45%. Treasury prices and yields move in opposite directions.
Oil prices added 67 cents to $81.94 U.S. a barrel.
Gold prices accumulated seven dollars to $1,823.80 U.S. an ounce.
MENAFN08112021000212011056ID1103122638
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.