Dow climbs greater than 100 factors to new file
Shares rose Tuesday, pushing the Dow and S&P 500 to new records as investors continued to fend off rising Covid cases from the Delta variant.
A $ 1 trillion bipartisan infrastructure bill should pass the Senate, and this could help allay concerns about a slowdown in economic growth amid the ongoing pandemic. The return on the 10-year yield rallied on Tuesday.
The Dow Jones Industrial Average rose about 130 points to hit a new intraday high. The S&P 500 was flat after hitting an intraday high at the beginning of the session. Meanwhile, the Nasdaq Composite lost 0.4%.
Bank stocks rose amid the surge in bond yields, but investors gave up technology stocks as rates rebounded. Goldman Sachs was up nearly 2%. Wells Fargo and Bank of America both gained more than 1.5%. The so-called FANNG names, however, were all in the red.
Energy stocks rebounded Tuesday after spearheading market declines on Monday, fueled by a fall in oil prices. Exxon Mobil and Chevron rose more than 1% on Tuesday and Diamondback Energy rebounded more than 2%. The US oil price rose 1.6% on Tuesday.
Stocks tied to the economic reopening also made up some of their losses on Monday. Norwegian Cruise Line was up 2% and American Airlines was up 1%.
The Senate could pass a bipartisan infrastructure bill worth $ 1 trillion as early as Tuesday. The plan, which sees $ 550 billion in new spending on traffic and broadband, could help boost the economy as peak growth slows after reopening after the pandemic.
During Monday’s regular trading, the Dow fell more than 100 points amid fears a wave of Covid cases could slow demand. The S&P 500 lost 0.1% and the Nasdaq Composite rose 0.16%.
AMC stock rose 4.7% after reporting a smaller-than-expected loss. The company also announced that it will accept Bitcoin in all US locations starting this year.
The profit season continues on Tuesday and Coinbase will be reporting. The stock, which trades closely with Bitcoin price, fell 3% on Tuesday. SoftBank and Sysco will also report.
Bitcoin price fell 1.5% on Tuesday after rising 5% on Monday to its highest price since May.
Investors are waiting for the consumer price index and producer price index data, both of which measure inflation, to be released on Wednesday and Thursday, respectively. A handful of central bank spokespersons, including Chicago Fed President Charles Evans and Kansas City President Esther George, are also expected this week. Investors will watch out for clues as to how the Fed plans to scale back its bond purchases.
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