U.S. stocks jumped to session highs, with the S&P 500 closed at record highs on Thursday after U.S. President Joe Biden embraced a bipartisan Senate infrastructure deal.
The S&P 500 rose nearly 0.6% to hit a record closing high of 4,266.49 and fully recoup the losses triggered by the Federal Reserve’s surprise policy pivot. The Dow industrials scrambled 322.58 points, adding 1.0% to 34,196.82, sitting about 2.6% from its all-time high. The Nasdaq Composite knocked out a quick 0.7% advance to reach another record at 14,369.71.
The infrastructure deal will include $579 billion in new spending, the White House said. Republicans have fought the president’s proposal to hike the corporate tax rate to 28% from 21%.
Construction and mining equipment maker Caterpillar and aerospace firm Boeing both jumped more than 2%, helping lift the Dow Jones Industrial Average.
Fueling the S&P 500’s gains more than any other stock, Tesla Inc rose 3.5% after Chief Executive Officer Elon Musk said he would list SpaceX’s space internet venture, Starlink, when its cash flow is reasonably predictable, adding that Tesla shareholders could get preference in investing.
Comments from Fed Chair Jerome Powell during a Congressional testimony Tuesday reiterated that inflation pressures should be temporary, which seemed to soothe market jitters.
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.
Bank shares gained ahead of the Fed’s annual bank stress test results, which are scheduled for release after the bell on Thursday. The test examines how banks fare during various hypothetical economic downturns. Banks were forced to freeze dividends and stop buybacks during the pandemic. These results should give them the green light to eventually raise payouts. Goldman Sachs shares rose 2.1%, while JPMorgan gained nearly 1%.