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The Nasdaq and the S&P 500 indexes closed at record highs on Thursday, with the Dow also jumping after U.S. President Joe Biden embraced a bipartisan Senate infrastructure deal. The TSX rose as well, finishing about 15 points below its record high of last week.

With massive fiscal stimulus helping the U.S. economy grow at a 6.4% annualized rate in the first quarter, investors have been banking on an infrastructure agreement that could steer the next leg of the recovery for the world’s largest economy and fuel more stock gains.

Caterpillar jumped 3.4% and Boeing rallied 2.2%, helping lift the Dow Jones Industrial Average.

“In the short term, I think there will be some ‘buy the rumour and sell the news’ in materials and industrials, but as we start to see more details come out about how the money will be spent, I think we will get a continued benefit,” said Sal Bruno, chief investment officer at IndexIQ in New York.

Tesla Inc rose 5% after Chief Executive Officer Elon Musk said he would list SpaceX’s space internet venture, Starlink, when its cash flow is reasonably predictable, adding that Tesla shareholders could get preference in investing.

Initial claims for state unemployment benefits fell 7,000 to 411,000 for the week ended June 19, the Labor Department said on Thursday, but were still higher than the 380,000 that economists had forecast.

The Commerce Department said the economy grew at a 6.4% rate last quarter, unrevised from the estimate published in May.

So far this month, the S&P 500 growth index has climbed almost 4%, outperforming the value index’s 2% drop.

In Canada, the S&P/TSX Composite Index closed up 50.73 points, or 0.25%, at 20,215.12. Consumer staples, energy and financials sectors all rose about half a percentage point.

Hardwoods Distribution was a standout performer, surging 27.63% after announcing a deal late Wednesday to acquire Novo Building Products Holdings, a leading U.S. distributor of architectural grade building products, for US$303 million.

The Dow Jones Industrial Average was up 1.04% at 34,225.35 points, while the S&P 500 gained 0.66% to 4,269.79.

The Nasdaq Composite added 0.72% to 14,374.56.

The S&P 500 technology, healthcare and communication services sector indexes hit record highs.

Eli Lilly and Co jumped almost 8% after the drugmaker said it would apply for the U.S. Food and Drug Administration’s accelerated approval for its experimental Alzheimer’s drug this year. 

In response, Biogen Inc, which received a controversial approval for its Alzheimer’s drug aducanumab earlier this month, dropped almost 6%.

Oil prices steadied on Thursday, holding close to their highest in almost three years, supported by drawdowns in U.S. inventories and accelerating German economic activity.

Prices also drew support from doubts about the future of the 2015 Iran nuclear deal that could end U.S. sanctions on Iranian crude exports.

Brent settled up 37 cents, or 0.5%, to $75.56 a barrel by 12:28 p.m. EDT (1628 GMT), after earlier rising to $75.78. U.S. crude settled up 22 cent to $73.30 a barrel, after hitting a session high of $73.61 earlier.

On Wednesday, both benchmarks hit their highest since October 2018.

Data from Germany showed the largest upward leap in retail conditions since German reunification more than three decades ago, stoking expectations European fuel demand will recover.

Across the Atlantic, U.S. crude inventories dropped to their lowest since March 2020, official data showed. U.S. gasoline stocks also posted a surprise draw.

U.S. gold futures settled 0.4% lower at $1,776.70.

Reuters, Globe staff

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