Stocks rose on Tuesday, pushing the Dow Jones Industrials and S&P 500 to new records, after the Senate's passage of a $1-trillion infrastructure package boosted stocks tied to economic growth.
The 30-stock index leaped 162.82 points finish Tuesday afternoon at 35,264.67, another record, led by Caterpillar, which gained nearly 2.5%.
The S&P 500 jumped 4.4 points to 4,436.75, and closed at a fresh all-time high.
The NASDAQ crumbled 72.09 points to 14,817.40.
Stocks that potentially benefit from the Senate bill moved higher, with steelmaker Nucor jumping 9.6%.
Bank stocks rose amid the jump in bond yields. Wells Fargo jumped 2%, while Goldman Sachs and Bank of America rose 2% and 1.8%, respectively. Investors dumped technology shares as rates bounced, and the so-called FAANG names all closed in the red.
Energy stocks rebounded on Tuesday, after leading the market's declines on Monday spurred by a drop in oil prices. Exxon Mobil and Chevron popped 1.7% and 1.8%, respectively. U.S. oil prices rose more than 2.5%.
Stocks tied to the economic reopening also made back some of their losses from Monday. Norwegian Cruise Line gained 4.7% and American Airlines rose 1.8%.
AMC's stock jumped on Tuesday morning before reversing course later the day. The company reported a lower loss than expected for the second quarter. The movie theater operator also announced it would begin accepting bitcoin at all U.S. locations this year.
Earnings season continues Tuesday, with Coinbase set to report. Its stock, which trades closely with the price of bitcoin, dropped 3% Tuesday. SoftBank and Sysco are also set to report.
The U.S. Senate could pass a $1-trillion bipartisan infrastructure bill as soon as Tuesday. The plan, which includes $550 billion in new spending on transportation and broadband, could help give the economy a boost as peak growth slows following the reopening from the pandemic.
Prices for 10-Year Treasurys were lower, raising yields to 1.35% from Monday's 1.33%. Treasury prices and yields move in opposite directions.
Oil prices hiked $1.92 to $68.40 U.S. a barrel.
Gold prices reversed direction and gained $3.40 to $1,729.90 U.S. an ounce.