Dow rises 160 points to close at a record after Senate passes $1 trillion infrastructure bill
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 162.82 points to 35,264.67 to close at a record, led by Caterpillar, which gained nearly 2.5%. The S&P 500 rose 0.1% to 4,436.75 and closed at a fresh all-time high. Meanwhile, the Nasdaq Composite dipped about 0.5% to 14,788.09, 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 nearly 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. Wells Fargo jumped 2%, while Goldman Sachs and Bank of America rose 2% and 1.8%, respectively. Investors dumped technology shares as rates bounced, and the so-called FAANG names all closed 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 1.7% and 1.8%, respectively. U.S. oil prices rose more than 2.5%.
Stocks tied to the economic reopening also made back some of their losses from Monday. Norwegian Cruise Line gained 4.7% and American Airlines rose 1.8%.
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. The movie theater operator also announced it would begin accepting bitcoin at all U.S. locations this year.
The price of bitcoin fell 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 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.