Dow, S&P 500 Lifted By US Infrastructure Bill

The bill, which now heads to the House of Representatives, could provide the nation's biggest investment in decades in roads, bridges, airports and waterways. Senators also began voting on a follow-up US$3.5 trillion spending package that Democrats plan to pass without Republican votes.

"The market is looking at it as part one is a done deal, the market is okay with that," said Ken Polcari, managing partner at Kace Capital Advisors in Boca Raton, Florida.

"I do not believe the market is going to be ok with US$3.5 trillion but there is still the possibility they are able to block it, or slow it, and have more conversation so the market isn’t focusing on that one yet."

Energy, industrials and materials, which stand to benefit from an economic recovery, were among the top performing S&P sectors, while names such as Caterpillar, Deere and Vulcan Materials each rose about two percent as they are poised to reap the gains of infrastructure projects.

Energy shares were buoyed as recently beaten down crude prices jumped nearly three percent.

The Dow Jones Industrial Average rose 0.46 percent, to 35,265, the S&P 500 gained 0.10 percent, to 4,437 and the Nasdaq Composite dropped half a percent to 14,788.

With new coronavirus cases rising in the United States, progress on the infrastructure package should support the recovery in the world's largest economy.

The rapid spread of the Delta variant has pushed COVID-19 cases and hospitalisations to a six-month high, with cases averaging 100,000 for three days in a row – up 35 percent over the past week.

Investors will also watch inflation numbers this week for more insight into the Federal Reserve's monetary policy plans, in the wake of comments from two Fed officials on Monday that inflation was already at a level that could satisfy one portion of the requirement for the beginning of rate hikes.

AMC Entertainment gave up early gains and ended the session 6.07 percent lower even after beating second-quarter revenue estimates as moviegoers returned to its theatres after a year of closures and restrictions. (Reuters)