US stocks climb to record highs as economic optimism grows amid progress on infrastructure

Stock Market Bubble
A trader blows bubble gum during the opening bell at the New York Stock Exchange (NYSE) on August 1, 2019, in New York City. Johannes Eisele/AFP via Getty Images

US stocks opened mixed but near record highs on Monday as economic optimism grows amid progress on a massive infrastructure spending package.

Later in the week, investors will also be turning their attention to US non-farm payroll data on Friday. This will give an indication of how consistently the economy is recovering from the pandemic and what that might mean for the outlook for inflation.

The S&P 500 notched another record high after hitting an all-time high on Friday. The benchmark index enjoyed its largest weekly gain since February.The Nasdaq also hit a record high on Monday.

The rally over the last week was boosted by an agreement on a $1.2 trillion infrastructure spending deal as well as fading jitters about tightening policy by the Federal Reserve. Progress was made Sunday, when President Joe Biden said he would not veto a bill that was not attached to a larger reconciliation package, restating his support for a bipartisan solution.

“The Fed’s recent hawkish stance only accelerated a trend toward slightly lowered inflation expectations and a rotation into more predictable, high-quality growth stocks,” Rob Sechan, managing partner and co-founder of NewEdge Wealth, said in a statement.

Stocks recently have been edging higher thanks to robust economic data, the prospect of more fiscal stimulus, and continued low yields.

The yield on the US 10-year Treasury note was trading at 1.504%.

Here’s where US indexes stood at the 9:30 a.m. ET open on Monday:

In cryptocurrencies, bitcoin hovered around $34,229 Monday morning, 5% higher compared to the previous day’s low. Despite the recent downturn, prominent advocates still continue to play up the digital asset.

Mexican billionaire Ricardo Salinas Pliego recently said that his bank, Banco Azteca, is working on becoming the first in the Central American country to accept the cryptocurrency.

Meanwhile, Katie Haun, the co-chair of Andreessen Horowitz’s new $2.2 billion crypto fund said the cryptocurrency world could become as big as the internet for investors.

But over the weekend, Britain’s financial watchdog said cryptocurrency exchange Binance is not permitted to operate in the UK without its express approval. Binance Markets Limited is part of the wider Binance Group, operating the world’s largest cryptocurrency exchanges.

Oil prices edged lower after hitting more than two-year highs. A spike in COVID-19 cases in Asia put impeded rally ahead of this week’s OPEC+ meeting.

West Texas Intermediate crude slipped 0.34% to $73.80 per barrel. Brent crude, oil’s international benchmark, also fell 0.37%, to $75.90 per barrel.

Gold slid 0.34% to $1,776.21 per ounce. The price of the precious metal remains subdued as investors continue to assess the Fed’s policy stance.