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Benchmarks closed in record highs on Monday as investors picked up materials, energy and technology shares after Congress approved a more than $1 trillion infrastructure bill.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 104.27 points higher, or 0.3%, to close at 36,432.22, and hit an all-time intra-day record high of 36,565.73. The blue-chip index was lifted by 4.1% gain in shares of Caterpillar Inc. (CAT - Free Report) that carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The S&P 500 rose 4.17 points, or 0.1%, to close at a record high of 4,701.70 on Monday. The index not only closed above the 4,700 mark for the first time, it also achieved the record of 8th consecutive record close, the S&P 500’s longest such winning streak since 1997. Six of the 11 major sectors of the broader index closed in the green led by 1.2% gain in the materials sector. However, gains were capped by at least 1.4% decline in the consumer discretionary and utilities sectors.
The Nasdaq Composite Index closed at an all-time high of 15,982.36, after adding 10.77 points, or 0.07%, it closed higher for the 11th day in a row, longest streak since 2019. The tech-heavy index was led by 10.1% gain in shares of Advanced Micro Devices, Inc. (AMD - Free Report) .
On Monday, the fear-gauge CBOE Volatility Index (VIX) increased 4.5%, to close at 17.22. Advancing issues outnumbered declining ones on the NYSE by a 1.37-to-1 ratio. A total of 11.00 billion shares were traded yesterday, higher than the last 20-session average of 10.66 billion.
Congress Approves the Infrastructure Package
Markets rallied on Monday lifted by the House of Representatives’ approval of the $1 trillion infrastructure package late on Friday. The bill will provide new rounds of funding worth $550 billion for transportation, utilities and 5G, among other infrastructure projects. The infrastructure bill has now been forwarded to President Joe Biden, while the lawmakers also turn to the president for his social spending bill, which the House of Representatives is expected to vote on the measure next week.
The news lifted the Global X U.S. Infrastructure Development ETF to rise nearly 1.3% and hit a new all-time high on Monday. Additionally, the share of companies poised to benefit from the bill like Deere & Company (DE - Free Report) and Nucor Corporation (NUE - Free Report) rose 1.6% and 3.6%, respectively.
Fed Can Raise Rates by 2022 End
On Monday, the Federal Reserve officials indicated that the central bank could raise interest rates by the end of 2022. The Fed is constantly keeping eye on economic recovery, analyzing the extended period of high inflation and the labor market scenario. Last week, the Fed announced plans to begin tapering its pandemic-era economic aid by the end of November. It plans to put the central bank on track to end its asset purchase program by the middle of next year.
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Stock Market News for Nov 9, 2021
Benchmarks closed in record highs on Monday as investors picked up materials, energy and technology shares after Congress approved a more than $1 trillion infrastructure bill.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 104.27 points higher, or 0.3%, to close at 36,432.22, and hit an all-time intra-day record high of 36,565.73. The blue-chip index was lifted by 4.1% gain in shares of Caterpillar Inc. (CAT - Free Report) that carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The S&P 500 rose 4.17 points, or 0.1%, to close at a record high of 4,701.70 on Monday. The index not only closed above the 4,700 mark for the first time, it also achieved the record of 8th consecutive record close, the S&P 500’s longest such winning streak since 1997. Six of the 11 major sectors of the broader index closed in the green led by 1.2% gain in the materials sector. However, gains were capped by at least 1.4% decline in the consumer discretionary and utilities sectors.
The Nasdaq Composite Index closed at an all-time high of 15,982.36, after adding 10.77 points, or 0.07%, it closed higher for the 11th day in a row, longest streak since 2019. The tech-heavy index was led by 10.1% gain in shares of Advanced Micro Devices, Inc. (AMD - Free Report) .
On Monday, the fear-gauge CBOE Volatility Index (VIX) increased 4.5%, to close at 17.22. Advancing issues outnumbered declining ones on the NYSE by a 1.37-to-1 ratio. A total of 11.00 billion shares were traded yesterday, higher than the last 20-session average of 10.66 billion.
Congress Approves the Infrastructure Package
Markets rallied on Monday lifted by the House of Representatives’ approval of the $1 trillion infrastructure package late on Friday. The bill will provide new rounds of funding worth $550 billion for transportation, utilities and 5G, among other infrastructure projects. The infrastructure bill has now been forwarded to President Joe Biden, while the lawmakers also turn to the president for his social spending bill, which the House of Representatives is expected to vote on the measure next week.
The news lifted the Global X U.S. Infrastructure Development ETF to rise nearly 1.3% and hit a new all-time high on Monday. Additionally, the share of companies poised to benefit from the bill like Deere & Company (DE - Free Report) and Nucor Corporation (NUE - Free Report) rose 1.6% and 3.6%, respectively.
Fed Can Raise Rates by 2022 End
On Monday, the Federal Reserve officials indicated that the central bank could raise interest rates by the end of 2022. The Fed is constantly keeping eye on economic recovery, analyzing the extended period of high inflation and the labor market scenario. Last week, the Fed announced plans to begin tapering its pandemic-era economic aid by the end of November. It plans to put the central bank on track to end its asset purchase program by the middle of next year.