S&P 500 punches above 4,000 for first time as Biden targets $2 trillion for infrastructure spending

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., May 31, 2017. REUTERS/Brendan McDermid
Traders work on the floor of the NYSE in New York.

  • The S&P 500 closed above 4,000 for the first time after President Biden outlined a $2 trillion infrastructure spending proposal.
  • The Dow Jones Industrial Average started the second quarter by rising for the first time in two sessions.
  • Biden will likely hit resistance to his proposal of raising the corporate tax rate to 28%.
  • See more stories on Insider’s business page.

The S&P 500 notched a milestone as US stocks rose Thursday, carried higher following plans by President Joe Biden to seek $2 trillion to upgrade infrastructure in the world’s largest economy.

The S&P 500 climbed and ended above the 4,000 mark for the first time, a strong start to trading in the second quarter and in April, a month that’s typically been a winner for the benchmark index. Meanwhile, the Dow Jones Industrial Average gained for the first time in two sessions.

Here’s where US indexes stood at the 4 p.m. ET close on Thursday:

The moves came after Biden late Wednesday outlined an eight-year plan to embark on investments in transportation systems, including shifts toward electric vehicles, as well as in road, bridges and broadband. Tracking infrastructure plays, the Global X US Infrastructure Development ETF and the iShares Global Infrastructure ETF each picked up 0.6%.

Biden’s plan will also include an accompanying tax hike for corporations, to 28% from 21%.

“We expect the project to be passed along party-line votes, probably in October. While many members of the Republican Party support infrastructure improvements, the tax hikes will prompt criticism that they will hurt US competitiveness and raise the cost of industrial production,” said Mark Haefele, chief investment officer at UBS Global Wealth Management, in a note.

Elsewhere in the markets Thursday, AMC shares fell after the movie-theater chain’s CEO discussed the company’s potential issuance of 500 million shares.

BlackRock has made $360,000 on bitcoin futures since January, according to a regulatory filing.

Uber shares could rise as much as 65% with profitability ‘around the corner,’ Jefferies says.

Micron Technology shares moved higher after the memory and data-storage maker beat quarterly financial expectations and offered a positive outlook for its fiscal second-quarter.

Gold rose 1.2% to $1,728 per ounce. Long-dated US Treasury yields eased, with the 30-year yield down 9 basis points to 2.34%, and the benchmark 10-year yield lower by 7 basis points to 1.679%.

Oil prices after OPEC and its allies reportedly agreed to start raising output in May as they expect demand to increase. Brent crude, oil’s international benchmark, rose 1.6% to $64.61 per barrel. West Texas Intermediate crude gained 3.6% to $61.27 per barrel.

Bitcoin rose 0.3 % to $58,904.77.