The Dow Jones Industrial Average climbed 322 points, or 0.95%, while the S&P 500 and the Nasdaq Composite advanced 0.58% and 0.69%, respectively. Both the S&P 500 and the Nasdaq Composite are trading in record territory.
|I:DJI||DOW JONES AVERAGES||36245.5||+294.61||+0.82%|
|I:COMP||NASDAQ COMPOSITE INDEX||14305.03233||+78.81||+0.55%|
The gains come as President Biden announced the White House had reached a $953 billion infrastructure deal with a bipartisan group of senators. The package includes approximately $559 billion in new spending on roads, bridges, broadband internet, and other traditional infrastructure projects and would not be paid for with a corporate tax hike. Democrats still intend to try and push through a larger spending plan through the reconciliation process, which would only need a simple majority rather than the 60 votes required to avoid the filibuster.
In economic data, weekly jobless claims fell less than expected to 411,000, remaining at pandemic-elevated levels. Other data showed first-quarter gross domestic product was unrevised at 6.4% annual growth and durable goods orders were weaker than expected.
The U.S. 10-year yield was unchanged at 1.49% ahead of the data and Fed speak.
In stocks, growth continues to lead the market higher as shares of companies like Tesla Inc. and Square Inc. rose.
Microsoft Corp. unveiled its first new Windows operating system since 2015. The company continues to flirt with a $2 trillion market capitalization and will need shares to close at or above $265.55 apiece to reach the mark.
In deals, Visa Inc. agreed to buy Sweden-based open banking platform Tink for 1.8 billion euros ($2.2 billion). The deal comes six months after Visa called off its planned acquisition of the startup Plaid.
In earnings, Darden Restaurants Inc. swung to a profit as both earnings and revenue exceeded analyst estimates and same-store sales nearly returned to pre-pandemic levels. The restaurant chain operator sees sales growing 25% to 29% during the current fiscal year.
|DRI||DARDEN RESTAURANTS INC.||159.91||+3.44||+2.20%|
In commodities, West Texas Intermediate crude oil edged up 22 cents to $73.30 a barrel and gold slipped $6.70 to $1,775.60 an ounce.
Overseas markets were strong.
Britain’s FTSE 100 rose 0.51% after the Bank of England kept policy on hold and said the current period of strong growth and inflation would be temporary. Elsewhere in the region, Germany’s DAX 30 and France’s CAC 40 advanced 0.86% and 1.22%, respectively.
In Asia, Japan’s Nikkei 225 was unchanged, China’s Shanghai Composite ticked up 0.01% and Hong Kong’s Hang Seng index rose climbed 0.23%.