The S&P 500 exceeded 4,700 points for the first time on Monday, while the broader market was lifted by the House sending a $1 trillion infrastructure bill to President Joe Biden for his signature. File Photo by John Angelillo/UPI | License Photo
Nov. 8 (UPI) -- The S&P 500 closed above 4,700 points for the first time on Monday as markets got a boost from Congress passing a $1 trillion infrastructure bill over the weekend.
The broad index gained 4.17 points, or 0.087%, to reach 4,701.70 at the end of trading. The Dow Jones Industrial Average gained 104.27 points, or 0.29%, for an intraday record, while the Nasdaq Composite rose 0.067%.
Industrials and materials stocks led the way Monday after the House late Friday voted to send the bill that seeks to modernize roads, public transit, bridges, broadband, water ports, airports, and doing other things to address the "climate crisis," to President Joe Biden's desk for his signature.
"Investors have waited for a significant step-up in infrastructure spending for decade's," Citi's Anthony Pettinari said in a note, according to CNBC. "We view this generational investment as a significant catalyst for growth for a number of our stocks."
Caterpillar stock gained 4.06% to lead the Dow, while chipmaker Advanced Micro Devices rose 10.14% to lead the S&P and Nasdaq as it announced Meta, formerly known as Facebook, would use its chips while also revealing new products.
Tesla stock fell 4.92% after CEO Elon Musk over the weekend pledged to sell 10% of his holdings based on the results of a Twitter poll.
Federal Reserve Vice Chairman Richard Clarida on Monday said he was confident "imbalances" in the market leading to inflation will realign with the central bank's forecast next year, allowing it to refrain from raising interest rates until the end of 2022.
"Inflation so far this year represents to me, much more than a 'moderate' overshoot of our 2% longer-run inflation objective and I would not consider a repeat performance next year a policy success," he said. "Second, as always, there are risks to any outlook and I and 12 of my colleagues believe that the risks to the outlook for inflation are to the upside."