US stocks rise to record highs as $1 trillion infrastructure bill boosts materials and commodities shares

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  • Wall Street’s big indexes ended at new record highs Monday.
  • Materials and energy stocks topped performances on the S&P 500 index.
  • Next on deck this week for markets is the consumer price inflation report.

US stocks ended at new record highs Monday, paced by companies exposed to the construction industry and commodities after lawmakers approved a massive infrastructure bill.

All three of Wall Street’s big indexes ended at record levels, with the S&P 500 closing about 4,700 for the first time and extending this year’s gain to roughly 25%. The materials and energy sectors on the broad index put in the best performances of the session after House lawmakers late last week approved a $1.2 trillion infrastructure bill, which will be sent to President Joe Biden to sign.

The bill provides funding for roads, highways, alongside electric vehicles, clean energy, and high-speed broadband. The bill passed in the Senate in August with 19 Republicans.

Here’s where US indexes stood at 4:00 p.m. on Monday:

“The passing of the traditional infrastructure bill is a strong positive for the economy and for markets, as it should result in positive ROI for the country,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, in a note. “Infrastructure is one of those expenditures which is truly an investment – with an expected positive return on money spent – as opposed to a pure expense, with relatively little chance of getting the money back,” he said.

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The record highs also arrived ahead of what will be Wednesday’s closely watched report on consumer inflation. Consumer prices have soared this year on factors including supply-chain shortages and stronger demand for goods and services as the economy recovers from the COVID-19 pandemic.

Around the markets, Tesla stock fell after CEO Elon Musk proposed a sale of about 10% of his stake of the company’s shares.

Ether hit record highs on Monday on a higher burn rate of tokens and on new money flowing into the market, bringing the total value of the cryptocurrency market to $3 trillion for the first time.

Gold rose 0.5% at $1,826.09 per ounce. The 10-year yield rose to 1.499%.

Oil prices gained, with West Texas Intermediate crude up by 1% at $82.09 per barrel. Brent, oil’s international benchmark, picked up 0.3% to $83.67.

Bitcoin burst higher, by 4.5% to $66,050.19.

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