The Dow Jones Industrial Average gained 90 points, or 0.27%, while the S&P 500 and the Nasdaq Composite climbed 0.36% and 0.66%, respectively.
The Biden administration says its so-called American Jobs Plan will be a “once-in-a-century capital investment” in U.S. infrastructure that will create millions of good-paying jobs that positions America to “out-compete” China.
Bank of America notes the biggest beneficiaries will likely be industrial and material stocks.
The $2 trillion plan will be entirely funded by Biden’s proposed Made in America Tax plan that would hike the corporate tax rate to 28%, up from 21%, and increase the minimum tax on multinational corporations to 21%. The increase in the corporate tax rate would partially undo former President Donald Trump’s tax cut which lowered the top corporate rate from 35%, among the highest in the world.
Biden will officially unveil the plan at a speech in Pittsburgh later on Wednesday.
In stocks, Pfizer Inc. and BioNTech SE said their COVID-19 vaccine was safe and effective for children as young as 12 years old. A statement released by Pfizer CEO Albert Bourla said his company hopes doses can be given before the next school year.
Swiss lender Credit Suisse had its credit outlook cut to negative at S&P Global Ratings due to its exposure to the unwinding of billions of dollars of positions by the hedge fund Archegos Capital Management.
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Boeing Co. and Alaska Airlines Group Inc. finalized an agreement in which the latter would buy an additional 23 737 MAX 9 jets that will be delivered between 2023 and 2024. The deal gives Alaska Airlines an option to purchase an additional 15 aircraft with deliveries occurring between 2023 and 2025.
In earnings, Walgreens Boots Alliance Inc. reported its quarterly profit rose 8.4% from a year ago, helped by improved sales at its U.S. pharmacies. The company also raised its 2021 adjusted earnings per share forecast to mid-to-high single-digit growth.
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Meanwhile, steel manufacturer Cleveland-Cliffs Inc. outperformed after guiding both first-quarter and full-year adjusted EBITDA above estimates. The announcement also boosted rival U.S. Steel Corp.
In commodities, West Texas Intermediate crude oil fell 43 cents to $60.12 per barrel and gold ticked up $1.30 to $1,687.30 an ounce.
Overseas markets were lower across the board.
Britain's FTSE 100 paced the decline in Europe, trading down 0.33% while France's CAC 40 and Germany’s DAX 30 slid 0.27% and 0.21%, respectively.
In Asia, Japan’s Nikkei 225 lost 0.86%, Hong Kong’s Hang Seng index retreated 0.7% and China’s Shanghai Composite index slumped 0.43%.