Construction Stocks Rise on Infrastructure Investment Agreement... NY Stock Market Up (Comprehensive)

[Asia Economy New York=Correspondent Baek Jong-min] Major indices on the New York Stock Exchange closed higher across the board, buoyed by news that U.S. President Joe Biden and bipartisan senators have reached an agreement on an infrastructure investment plan.

Riding on the news of an agreement on infrastructure investment, construction-related stocks showed strong gains on the New York Stock Exchange on the 24th.

On the 24th (local time), the Dow Jones Industrial Average rose 322.58 points (0.95%) to close at 34,196.82, the S&P 500 index gained 24.65 points (0.58%) to 4,266.49, and the Nasdaq index increased by 97.98 points (0.69%) to finish at 14,369.71.

The news that President Joe Biden and senators agreed on a $1 trillion infrastructure investment budget boosted investor sentiment.

Since Biden’s inauguration, infrastructure investment has been a source of both hope and concern in the market, but contrary to initial expectations, the investment was significantly reduced. The new investment amount stands at $579 billion, which is a substantial cut compared to the initially announced $2.3 trillion.

Following the infrastructure investment agreement, the U.S. 10-year Treasury yield stabilized after a slight rise from 1.495% the previous day.

This news lifted construction-related stocks. Caterpillar, Martin Marietta Materials, and Vulcan Materials all closed higher.

Financial stocks rose about 1.2% ahead of the announcement of the large banks’ stress test results. According to the test results released after market close, major banks will not face restrictions on dividends or share buybacks.

Apple and Amazon declined, but Microsoft rose about 0.5% after unveiling Windows 11, marking the first time its market capitalization closed above $2 trillion.

Tesla rose more than 3% after CEO Elon Musk announced plans to pursue an initial public offering (IPO) for SpaceX’s satellite internet service business, Starlink, and said Tesla shareholders would be allowed to participate.