New York (CNN Business)Stocks are rallying Thursday after President Joe Biden announced a bipartisan agreement on an infrastructure deal.
The S&P 500 (SPX) and Nasdaq Composite (COMP) are on track to hit new record highs and the Dow (INDU) is up about 350 points.
“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 climbed 1.1%, or about 350 points, in the early afternoon, while the S&P is up 0.6% and the Nasdaq is up 0.7%.
“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.
The plan will amount to $1.2 trillion over eight years, with $559 billion in new spending, multiple sources familiar with the matter told CNN. That means the new proposal would be much smaller than the President’s initial $2.25 trillion plan.
“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.
