- 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.
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.