Stocks of steelmakers, including Cleveland-Cliffs, rise on infrastructure stimulus hopes
BLOOMBERG
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American steelmakers, including Cleveland-Cliffs Inc., and machinery producers surged Wednesday, Jan. 6, on expectations that Democrats will take control of Congress, paving the way for President-elect Joe Biden to pass a wide-ranging infrastructure stimulus bill.
Investors in the metal used in everything from skyscrapers to highways to bridges and tunnels are wagering that control of the House and Senate will give Biden the support he needs to make good on infrastructure and clean energy campaign promises.
The S&P Supercomposite Steel Index, which includes Cleveland-Cliffs, U.S. Steel Corp., Nucor Corp. and 11 other members, gained 6.8% by noon Wednesday and was headed for the biggest two-day gain since March. Caterpillar Inc., which makes the equipment needed for the massive projects, rose more than 6%.