Dow, S&P 500 hit record highs as Biden administration continues push for $1.9 trillion stimulus

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  • All three major US stock indexes climbed to intraday record highs Monday as investors remained optimistic for a large stimulus.
  • Treasury Secretary Janet Yellen pushed for Congress to pass a package of $1.9 trillion, citing the rocky labor market.
  • Bitcoin soared to a record high after Tesla said it bought $1.5 billion of the cryptocurrency.
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All three major US stock indexes hit intraday record highs on Monday as investors remained hopeful the Biden administration will pass a large stimulus package to support the economic recovery. 

US Treasury Secretary Janet Yellen pushed for Congress to pass a $1.9 trillion stimulus package in a Sunday interview. “If we don’t provide additional support, the unemployment rate is going to stay elevated for years to come,” she told CNN. Her comments follow last week’s disappointing payrolls report; The US added 49,000 jobs in January, missing the estimate of 105,000 additions.

“Reasons for the surge include the end of the short-interest induced frenzy, a gradual slowdown in the number of new Covid-19 cases in the U.S., an improvement in global GDP growth estimates, and the likelihood that most of the Biden $1.9 trillion stimulus package will be approved by congress,” said CFRA’s Sam Stovall on Monday.

The S&P 500 and Nasdaq closed at records last week to finish the first five trading days of February.

Here’s where US indexes as of 12:45 p.m. ET on Monday:

Read more: Credit Suisse says to buy these 16 ‘highest-conviction’ stock picks that are set to outperform despite the market’s contrarian view

Bitcoin soared as much as 16% to all-time-highs of $44,795.20 Monday morning after documents filed with the SEC revealed that Tesla invested $1.5 billion in the popular cryptocurrency. The electric vehicle maker also said it plans to accept the cryptocurrency as payment.

The latest investor dipping into the SPAC space is US hedge fund Elliott Management, known for its activist leaning. The Wall Street Journal reported Elliott has been meeting with bankers to raise more than $1 billion to create a special-purpose acquisition company.

Dating app Bumble increased its IPO size to $1.8 billion on Monday, according to a regulatory filing. The company will now offer 45 million shares priced at between $37 to $39 per share.

Oil prices rose. West Texas Intermediate crude jumped as much as 1.44%, to $57.66 per barrel. Brent crude, oil’s international benchmark, gained 1.37%, to $60.16 per barrel, at intraday highs.

Gold rose 1.2%, to $1,834.50 per ounce.

Read more: GOLDMAN SACHS: Buy these 13 stocks poised to benefit from surging commodity costs – including 2 set to soar by more than 40%

Read the original article on Business Insider