June 2, 2023

DS Duke

Global Business In World

NASDAQ, S&P Climb on Biden Infrastructure Deal

2 min read
U.S. stocks jumped to session highs with the S&P 500 reaching an all-time high Thursday...

U.S. stocks jumped to session highs with the S&P 500 reaching an all-time high Thursday after President Joe Biden declared that the White House struck an infrastructure deal with a bipartisan group of senators.

The Dow Jones Industrials surged 322.58 points, or 1{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d}, to 34,196.82.

The S&P 500 regained 24.65 points to 4,266.49, retaking its previous record on June 14, and fully recouping the losses triggered by the Federal Reserve’s surprise policy pivot.

The NASDAQ gathered 97.98 points to another all-time record of 14,369.71.

The infrastructure deal was expected to include more than $500 billion in new spending above the baseline set by Congress, much less than Democrats first proposed. Republicans have fought the president’s proposal to hike the corporate tax rate to 28{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d} from 21{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d}.

A broad group of stocks gained to push the benchmarks to new highs. Financials, energy and communication services were the best-performing sectors Thursday. Tesla added 3.5{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d}, while Caterpillar jumped 2.6{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d}.

Bank shares gained ahead of the Fed’s annual bank stress test results, which are scheduled for release after the bell on Thursday. Goldman Sachs shares rose about 2{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d}, while JPMorgan gained nearly 1{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d}.

The blue-chip Dow suffered its worst week since October with a 3.5{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d} loss last week after the Fed heightened inflation expectations and forecast rate hikes as soon as 2023. Economic comeback plays led the market losses as investors bet on slower growth amid the central bank’s hawkish sentiment. The S&P 500 fell 1.9{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d} last week.

Data out Thursday showed jobless claims totaled 411,000 for the week ended June 19, higher than an estimate of 380,000 from economists polled by Dow Jones.

Prices for 10-Year Treasurys were unchanged, maintaining yields at Wednesday’s 1.49{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d}. Treasury prices and yields move in opposite directions.

Oil prices regained 21 cents to $73.29 U.S. a barrel.

Gold prices fell $9.30 to $1,774.10 U.S. an ounce.

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