“We have a deal,” Biden told reporters Thursday. Even though it is a proposal with support from both parties, it’s still unclear if the deal will get enough support in the Senate.
US stocks were already trading higher before Biden’s comments, but they added onto their gains after the news broke.
The Dow closed 323 points, or nearly 1%, higher, while the S&P finished up 0.6%. The Nasdaq closed 0.7% higher.
“The market seems enthusiastic about the prospect of an agreement being reached on an infrastructure deal,” even though the details are yet to be determined, said Brian Price, head of investment management for Commonwealth Financial Network, in emailed comments.
“In my estimation this agreement represents a rare opportunity to lift the long term growth path of the economy, productivity and the living standards of individual Americans,” said Joe Brusuelas, chief economist at RSM US.