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S&P 500, Nasdaq Boast Record Close as Biden Unveils Infrastructure Deal

Stock MarketsJun 24, 2021 04:19PM ET
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© Reuters

By Yasin Ebrahim

Investing.com – The S&P 500 and Nasdaq closed at record highs riding a wave of economic optimism as President Joe Biden announced a nearly $600 billion infrastructure pact, the fate of which depends on the success of a much larger package that has drawn strong opposition from Republicans. 

The S&P 500 rose 0.6% to record intraday high of 4,266.50 and the Dow Jones Industrial Average jumped 1%, or 322 points, while the Nasdaq climbed 0.7% having hit an all-time high of 14,369.71 intraday.

“We have a deal,” Biden told reporters Thursday. “I think it’s really important we’ve all agreed that none of us got all that we wanted.”

The deal didn’t include the more ambitious initiatives including spending to expand child care and education and was much lower than the $2.3 trillion package touted by Biden earlier this year. The infrastructure bill will only be passed alongside a much larger package  -- expected to be funded by tax hikes -- that would focus spending on “human infrastructure," according to Biden. The much larger infrastructure package has a narrow window of passage in Congress through the reconciliation process without the support of Republicans. There isn't much room for error as Democrats hold a slender majority.  

Ahead of the announcement House speaker Nancy Pelosi said she wouldn't introduce the infrastructure bill until the second larger bill was prepared.

The upgrade to critical infrastructure is widely expected to boost productivity and ultimately economic growth.

Cyclical areas of the market, which benefit from stronger economic growth, added to gains with financials leading to the upside.

Financials were also helped by a jump in banking stocks ahead of the Federal Reserve's stress test results due later Thursday, which could pave the way for a massive wave of capital return to shareholders.

JPMorgan Chase & Co (NYSE:JPM), Goldman Sachs Inc (NYSE:GS) and Wells Fargo & Company (NYSE:WFC) closed higher, with the latter up nearly 3%.

Tech, meanwhile, was helped by a bid up in chip stocks even as some warn there isn't any light at the end of the tunnel just yet for the supply shortage in chips. Flex, the world’s third-biggest chipmaker, said the lack of supply is likely to last until at least mid-2022.

With the exception of Apple (NASDAQ:AAPL) and Amazon.com (NASDAQ:AMZN), megacap tech was mostly up with Microsoft adding to its $2 trillion market cap. 

Microsoft (NASDAQ:MSFT, Facebook (NASDAQ:FB), and Google-parent Alphabet (NASDAQ:GOOGL) closed higher. 

The record day on Wall Street was driven by a broad rally with most sectors - baring real estate and utilities - racking up gains. But this is an aberration from the ongoing rotation into value from growth or vice versa. The rotation doesn't point to a market that sees plenty of room for upside.  

"While the S&P 500 has drifted to new highs, this market has felt less overwhelmingly bullish and more rotational," Chief Market Strategist David Keller at StockCharts.com told Investing.com in an interview on Thursday. "So I think the last couple of months have been certainly rotational ... which is probably more a sign of a topping market than a healthy bull market." 

Still, the current technicals for the broader market are in place for the rally to continue at least in the short term. 

In the coming weeks, if the S&P 500 holds above its "50-day moving average, which is currently around 4,190 on the S&P 500, and previous lows from earlier this month in June which are around 4,160 and 4,170, I think we're in good shape," Keller added. "But if we start to break those support levels, then the character of the market can change very, very quickly once people start to see things roll over."

S&P 500, Nasdaq Boast Record Close as Biden Unveils Infrastructure Deal
 

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Comments (16)
Edward Rockwell
Edward Rockwell Jun 25, 2021 1:38AM ET
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Before you keep give my mney to people who hate me lie on me stab me in the back i would like my rightful oplace to order and decided im without home, car ,Family no security no friends 1 i can trust but seeing faulse people give my Lords money out to unworthy people that can be forgiven straight to a lighter heart ... You call them goosebumbs tinggles littlebit butterflys in you know that feeling when youvstop stealing for GODSSON Stop lying to God First thats werid foolish but Stop lying its ok xe can fix this easy once you call me 1(209)898-8217 I go by Edward Aaron Rockwell and ill sre to to my smart none lying all knowing friend can spare a second to fix this lying bucket you made Only offer...
Edward Rockwell
Edward Rockwell Jun 25, 2021 1:38AM ET
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Before you keep give my mney to people who hate me lie on me stab me in the back i would like my rightful oplace to order and decided im without home, car ,Family no security no friends 1 i can trust but seeing faulse people give my Lords money out to unworthy people that can be forgiven straight to a lighter heart ... You call them goosebumbs tinggles littlebit butterflys in you know that feeling when youvstop stealing for GODSSON Stop lying to God First thats werid foolish but Stop lying its ok xe can fix this easy once you call me 1(209)898-8217 I go by Edward Aaron Rockwell and ill sre to to my smart none lying all knowing friend can spare a second to fix this lying bucket you made Only offer...Before you keep give my mney to people who hate me lie on me stab me in the back i would like my rightful oplace to order and decided im without home, car ,Family no security no friends 1 i can trust but seeing faulse people give my Lords money out to unworthy people that can be forgiven
Edward Rockwell
Edward Rockwell Jun 25, 2021 1:38AM ET
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Before you keep giving my money to people who hate me lie on me stab me in the back and have ...... .. .I would like my rightful Place of Authority to find what is fit theres so much wrong i know i can help and decide who deserves help . im without home, car ,Family no security no friends 1 god i can trust but seeing faulse people give my Lords money out to unworthy people that can be forgiven straight to a lighter heart .. You call it goosebumbs tinggles littlebit butterflys in your stomach you know that feeling when you prove you choose to do the right way the honest All gods way if somone is acting out ITS NOT WHAT THEY WANT TO DO TRY TO BE CALM AND WE CAN HELP ANYONE with ANGER EVEN A LION. Stop lying to God First thats werid foolish but Stop lying its Ok but lets not be stuck on stupid and fix this once U call me 1(209)898-8217 I go by Edward Aaron Rockwell and ill sUre to my smart none lying all knowing friendS can spare a second to fix this et WE HAVE AHEAD OF US.
Charles Barnes
Charles Barnes Jun 24, 2021 8:55PM ET
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Come on man, You can trust ole Joe
Marilou Jugarap
Marilou Jugarap Jun 24, 2021 8:55PM ET
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oh yeah your right who's a man let know your face hmm wow ahah a catching fresh you been ahah hmm when you save wow hmm when alone ahah hmm wow !!!!!!! sunsets soon to bedroom ahahhloves 🍯 bees yes to beautiful young lady hmm to wait clouds ahah oh oh hmm !!!!!
Trevor Roberts
LimitUp Jun 24, 2021 8:53PM ET
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Cmon man, you like hotdogs dont ya?! We are going to build infrastructure to sell hotdogs on every corner.
YouTube Account
YouTube Account Jun 24, 2021 8:26PM ET
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It's stiff drink time. Again.
NUNO LOUREIRO
NUNO LOUREIRO Jun 24, 2021 8:17PM ET
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New spending plan and... The Dollar is going up??
CHADWICK RICHINGTON
CHADWICK RICHINGTON Jun 24, 2021 8:06PM ET
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The USA is embarassing
Jurgen Daub
Jurgen Daub Jun 24, 2021 8:06PM ET
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not anymore
David David
David9 Jun 24, 2021 8:04PM ET
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We are reaching $30T in national debt... is getting closer and closer to the time when the printing machine runs out of ink...
martin lewis
martin lewis Jun 24, 2021 7:05PM ET
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Unfortunately economic growth based on currency devaluation is short-lived...the USD is worth significantly less than during previous years and debt levels are at historical and critical levels. Housing prices up, cost of living up, home sales down, inflation at multi-decade highs...globalists make money through currency devaluation, and use their socialist sheep to push their agenda. Under Trump, the USD index was at multi-years highs, they were able to raise interest rates, and stock market boomed. Under Biden, they have just made the rich richer through currency devaluation and the market dumps several percent even if the Fed passes gas that slightly sounds like "0.01% rise in rates"...meanwhile media pushing out fluff pieces lo gaslight.
martin lewis
martin lewis Jun 24, 2021 7:05PM ET
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...and MSM knows it is in trouble when the best quote that they can find for their propaganda is “We have a deal,” Biden told reporters Thursday. “I think it’s really important we’ve all agreed that none of us got all that we wanted.""
Christian Gustafson
Christian Gustafson Jun 24, 2021 6:56PM ET
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Biden is not POTUS.
milena villa escobar
milena villa escobar Jun 24, 2021 6:33PM ET
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They will print to keep this Market going until midterms at least. Infrastructure is just an excuse. later when they print some more they'll have another excuse
fuck you
fuck you Jun 24, 2021 6:16PM ET
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lmaoooo
Ben Ramirez
Ben Ramirez Jun 24, 2021 5:27PM ET
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Keep pumping, FED.  It will all be over soon
Wat The
WhatThe Jun 24, 2021 5:27PM ET
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They are only in the Trillion mark, not in the Gigazillion mark yet. So all is good, plenty of run way to go.
Robert DZ the patterns
Robert DZ the patterns Jun 24, 2021 5:24PM ET
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pumping has to be done
Elmer Fudd
Elmer Fudd Jun 24, 2021 5:05PM ET
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Corporate tax hikes and more inflationary pressure on the Fed? New all time highs
King Agamemnon
King_Agamemnon Jun 24, 2021 5:03PM ET
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It couldn't breakout above 4260 during the main trading day and kept trying to sell off. They pushed it up into the close and then higher after the close. Fake rally, very unstable. Let's see what the inflation data looks like tomorrow morning.
Jouni Matero
Jouni Matero Jun 24, 2021 5:03PM ET
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They twist the data to suit the agenda. Just like today they twisted aka 'corrected' last weeks Job claims number higher so that it looked like it went lower this week. In reality this week's claims were 1k higher but suddenly it was 7k smaller after 'correction'. How convenient it was correct ed today lol.
King Agamemnon
King_Agamemnon Jun 24, 2021 5:03PM ET
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Jouni Matero  I was trying to catch the breakout. The fact that they have to wait until practically after the close to print an all time high shows how fake this market is and how fast the downside will hit once it reverses.
Jouni Matero
Jouni Matero Jun 24, 2021 4:44PM ET
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Like Biden's infra talk had nothing to do with the record rise. All were hyperbolic up way before his speech. Come on!
 
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