Monday, November 8th, 2021
Infrastructure package gives a boost
Dow Jones climbs cautiously
Investors on the US stock market are taking things a little more calmly at the beginning of the week and are digesting the latest record rally. The big winners on Wall Street were construction and steel corporations.
The passage of the trillion dollar infrastructure bill in the US is pushing prices on Wall Street to new record highs. The Dow Jones index climbed by up to 0.3 percent to 36,432 points at the beginning of the week. The leading indices Nasdaq and S&P 500 fluctuated at the values of the previous weeks and closed at 15,982 and 4701 points.
Investors mainly took hold of large industrial companies. “This infrastructure bill will give a boost to companies like 3M, Caterpillar and others that drive the industrial sector, but we also believe that the materials sector will really benefit from this bill,” said Greg Bassuk, chief executive of AXS Investments. Shares in the US construction machinery manufacturer Caterpillar went up by almost four percent.
After months of turmoil, the US Congress paved the way for a $ 1 trillion infrastructure package. The administration of US President Joe Biden will now usher in the greatest modernization of American roads, railways and other transportation infrastructures in a generation. Steel and aluminum manufacturers also benefited from this. The titles from the US producers Nucor as United States Steel climbed by more than two percent. “I think investor interest in the industrial and materials sectors has increased again after the infrastructure package was passed,” said Sam Stovall, chief investment strategist at CFRA Research in New York. “The markets will continue to rise until the end of the year.”
On the other hand, it caused a wave of sales TeslaCEO Elon Musk with his vote on Twitter for a share sale. Tesla shares fell by 4.9 percent at their peak, but reduced their losses in the course of trading. Musk had voted on Twitter over the weekend whether he should sell a tenth of his block of shares. Of the 3.5 million users who took part, almost 58 percent voted for it. “The majority voted to sell, which effectively signals that he will sell his shares in the market,” said Russ Mold, investment expert at AJ Bell. Investors could now try to sell ahead of Musk and then possibly buy back Tesla stock at a lower price.
The prospect of a tourist boom in the USA after the removal of the Corona travel restrictions provided a tailwind in the industry. Share certificates of the travel companies Expedia attracted around three percent. The airline’s titles were also asked for United Airlines, American Airlines and Delta Air Lines. After 20 months of entry ban, tourists and business travelers have been able to fly to the USA again since Monday.
Investors were also in a record mood Bitcoin and Ethereum. The soaring of cryptocurrencies pulled the entire industry further upwards. “Bitcoin is climbing higher again, near all-time highs, fueled by expectations that the era of cheap money will last longer while inflation is expected to continue to rise,” said Susannah Streeter, an analyst at Hargreaves Lansdown. Title of the crypto exchange Coinbase went up by 6.5 percent. The shares of the Bitcoin mining company Bitfarms attracted around 5 percent.