With massive fiscal outlays set to supercharge the U.S. economy’s vaccine-enabled recovery, the Dow Jones and S&P 500 are enjoying an old-economy moment. Oil, steel, machinery and banking stocks caught fire as the $1.9-trillion American Rescue Plan moved toward passage this month.
Now, as President Joe Biden gets ready to tee up another massive spending package focused on infrastructure, Wall Street is weighing what unleashed fiscal policy might mean for interest rates, tax rates and stock prices.