U.S. stock futures were mostly flat on Wednesday evening as Wall Street looked to build on a solid March following the rollout of President Joe Biden’s infrastructure plan.
Futures tied to the Dow Jones Industrial Average added 17 points, or less than 0.1%. Those for the S&P 500 inched up less than 0.1%, and futures for the Nasdaq 100 rose about 0.2%.
The quiet move in futures came after Biden introduced his multi-trillion dollar infrastructure proposal. The plan includes spending on roads and bridges as well as green energy and water system upgrades.
This marks the second major spending push of Biden’s presidency after he signed a $1.9 trillion relief and stimulus bill on March 11.
“With the American Rescue Plan, we’re meeting immediate emergencies. Now it’s time to rebuild,” Biden said on Wednesday.
ech stocks outperformed industrial and construction names on Wednesday despite details of plan rolling out, a possible sign that the increased funding has been priced in by the market. Recovery and cyclical stocks have performed well since the start of the year as investors grew more optimistic about government spending and Covid vaccinations.
Bank of America equity strategist Savita Subramanian said on CNBC’s “Fast Money” that the market may still need to digest the tax hikes included in the plan, creating a potential headwind for stocks.
“I think the market is pricing in the good news of infrastructure … I don’t think the market has necessarily priced in the negatives, which is how are we going to pay for this,” Subramanian said.
