Stocks Climb as Biden Strikes Infrastructure Deal: Markets Wrap – Yahoo Finance

(Bloomberg) — Stocks climbed to a record as President Joe Biden’s bipartisan $579 billion infrastructure deal added to optimism the economic recovery will keep pushing ahead. The dollar fell.

Companies that stand to benefit the most from a rebound in growth led gains in the S&P 500 after the news. Caterpillar Inc., the world’s biggest maker of mining and construction equipment, surged alongside raw-material producers such as U.S. Steel Corp. and Nucor Corp. Financial shares rallied before the results of the Federal Reserve’s stress tests, with major banks expected to pass, paving the way for a doubling of payouts in the next four quarters.

The bipartisan legislation is expected to move through Congress alongside a separate bill that would spend trillions more on what Biden called “human infrastructure” that the GOP opposes. Earlier Thursday, Atlanta Fed President Raphael Bostic and his Philadelphia counterpart Patrick Harker urged more spending on infrastructure investment — noting that it could boost U.S. productivity and growth.

“The market seems enthusiastic about the prospect of an agreement being reached on an infrastructure deal,” said Brian Price, head of investment management at Commonwealth Financial Network. “From an asset allocation perspective, value seems to be benefiting most from this news.”

Data Thursday showed applications for U.S. state unemployment insurance fell slightly last week, though were higher than forecast, while orders for durable goods rose in May at the fastest pace since January.

Shares of the fastest-growing U.S. companies have stopped moving in lockstep with the cheapest stocks. The shift is evident from the correlation between the S&P 500 Pure Growth and Pure Value indexes during the past 200 trading days, which dropped to the lowest since October 2000, according to data compiled by Bloomberg.

Elsewhere, the pound fell after the Bank of England pushed back against speculation that a surge in inflation means it’s preparing to boost interest rates — saying the economy still needs support.

For more market commentary, follow the MLIV blog.

Here are some events to watch this week:

U.S. personal income/spending, University of Michigan sentiment on Friday

These are some of the main moves in markets:

Stocks

The S&P 500 rose 0.7% as of 2:48 p.m. New York timeThe Nasdaq 100 rose 0.8%The Dow Jones Industrial Average rose 1%The MSCI World index rose 0.6%

Currencies

The Bloomberg Dollar Spot Index fell 0.2%The euro was little changed at $1.1930The British pound fell 0.2% to $1.3932The Japanese yen was little changed at 110.88 per dollar

Bonds

The yield on 10-year Treasuries was little changed at 1.48%Germany’s 10-year yield declined one basis point to -0.19%Britain’s 10-year yield declined four basis points to 0.74%

Commodities

West Texas Intermediate crude rose 0.3% to $73.32 a barrelGold futures fell 0.3% to $1,777.30 an ounce

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