Stocks related to infrastructure jumped higher on Monday morning trading after the House of Representatives cleared a $1 trillion bill over the weekend.
The strength for those infrastructure stocks got revealed in the Global X US Infrastructure Investment ETF, which trades under ticker PAVE, as it has gained 1.5% and marked an all-time high record in the first few minutes of the session. The fund’s highest holdings include stocks such as Nucor and Vulcan Materials, which reached solidly higher on Monday morning.
The need for sufficient infrastructure funds has been a talking point for years in Washington.
Citi’s Anthony Pettinari said in a note to clients, “We view this generational investment as a significant catalyst for growth for a number of our stocks.”
Bernstein analyst Chad Dillard said that United Rentals gained 2% in morning trading on Monday and was in a strong position due to the passing of the new bill.
The Bernstein note said, “With >$500B of incremental infrastructure spend committed, contractors’ ability to take on additional work will be limited by their balance sheets, which will incentivize more rental than equipment purchase. URI is best positioned to benefit,”