The Stock Market Glows! The Dow and S&P 500 Hit Record Highs

The week goes quite successfully for the stocks market.

After the Senate passed a $1 trillion bipartisan infrastructure plan, boosted by the rise of economically sensitive value stocks, the Dow Jones and the benchmark S&P 500 index rose to record highs on Tuesday.

The Dow Jones Industrial Average rose 162.82 points to 35,264.67 points, setting a record high.

Caterpillar led the gains, rising nearly 2.5%. The S&P 500 index rose 0.1% to 4,436.75, closing at a record high.

However, at the same time, the Nasdaq Composite Index fell by about 0.5% to 14,788.09, as rising U.S. Treasury yields weighed on technology stocks.

The bill is now submitted to the House of Representatives. It may become the most significant highway infrastructure investment in the United States in decades.

Senators have also started voting on a $3.5 trillion follow-up spending plan. The Democrats even plan to pass the spending plan without a Republican vote.

How did the other stocks perform?

Shares that may benefit from the Senate bill rose, with steelmaker Nucor Inc. rose nearly 9.6%.

A more comprehensive range of infrastructure exchange-traded funds, including iShares U.S. Infrastructure ETF and Global X US Infrastructure Development ETF, also outperformed the market.

Bank stocks rose due to rising bond yields. Wells Fargo added up 2%, and Goldman Sachs and Bank of America increased by 2% and 1.8%, respectively.

As interest rates rebounded and investors dumped technology stocks, the so-called FAANG names closed down.

Energy stocks rebounded on Tuesday after the market fell on Monday due to falling oil prices.

Exxon Mobil and Chevron rose 1.7% and 1.8%, respectively. U.S. oil prices have increased by more than 2.5%.

Stocks related to the reopening of the economy also recovered some of the losses since Monday. Norwegian Cruise Line rose 4.7%, and American Airlines rose 1.8%.

AMC’s stock rose on Tuesday morning and then reversed later in the day. The company reported lower-than-expected losses for the second quarter.

The movie theatre operator also announced that it would begin accepting Bitcoin in all locations in the United States this year.

Dept purchases might reduce in Q4

Atlanta Federal Reserve Bank President Raphael Bostic said that the central bank might lower debt purchase possibilities in the fourth quarter.

The Federal Reserve buys $120 billion in Treasury bonds, institutions, and mortgage bonds every month.

According to Bostic, if job growth maintains a strong pace, he is open to withdrawing stimulus measures earlier.

It is also known that the Fed plans to gradually reduce the scale of asset purchases as soon as possible.

For now, investors await data on the Consumer Price Index and Producer Price Index.

Both of these indexes measure inflation and are scheduled to be released on Wednesday and Thursday.

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