The Dow Jones Industrial Average climbed 337 points, or 0.99%, while the S&P 500 and the Nasdaq Composite advanced 0.62% and 0.67%, respectively. Both the S&P 500 and the Nasdaq Composite are trading in record territory.
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., Apple 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.
Ticker Security Last Change Change % MSFT MICROSOFT CORP. 266.45 +1.17 +0.44%
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.
Ticker Security Last Change Change % V VISA, INC. 236.03 +1.30 +0.55%
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.
Ticker Security Last Change Change % DRI DARDEN RESTAURANTS, INC. 140.09 +4.48 +3.30%
In commodities, West Texas Intermediate crude oil edged up 4 cents to $73.12 a barrel and gold slipped $5.40 to $1,778 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%.