Investors are hopeful that President-elect Donald Trump and Congress will spend more to help rebuild the nation’s roads and bridges, according to a CNN Money report.
The day after the election, shares of Caterpillar surged 7%, shares of U.S. Steel skyrocketed nearly 20%, and Nucor, Steel Dynamics, and AK Steel were all up about 10% as well.
But how will the next President pay for infrastructure spending?
Concerns about how to pay for infrastructure improvements may be one of the main reasons why yields for U.S. Treasury bonds rose Wednesday. Bond rates rise when prices fall -- i.e. when investors are selling bonds.
Bond rating agency Fitch warned in a report Wednesday that concerns about higher infrastructure spending was one reason why Trump's victory could be a negative for the creditworthiness of the United States over the next few years.
But investors in construction equipment stocks paid no mind to those concerns. Still, there was one notable loser in the group -- Mexican cement giant Cemex (CX). Shares of Cemex fell nearly 10%.
The full story is available here.