By Dhirendra Tripathi
Investing.com - The SPDR® S&P Retail ETF (NYSE:XRT) jumped more than 4%, breaching the $90 level on hopes the proposed $1.9 trillion stimulus will boost consumer spending.
The retailer-focused fund, the largest in its category, has total assets of $620 million and carries a 12-month yield of 0.8%, according to Morningstar.
The stimulus, being pushed by President Joe Biden's administration, is expected to become a law next week. Once signed, it will send $1,400 checks to those qualified by income. Investors see the beneficiaries spending a part of the money at retail stores.
Shares of retailers were up too. (NASDAQ:COST) was up 1.9% at $317.50, giving the (NYSE:WMT) rival a market cap of $140.54 billion. The Bentonville, Arkansas-based retailer itself was up 1.3% at $129. The Sam Walton-founded company has a market cap of $366.81 billion.
The stocks were up as the broader market hummed, too. Dow Jones Industrial Average was up 1% and S&P 500 2% as tech stocks and (NASDAQ:TSLA) rebounded with a vengeance on easing concerns over yields. XBR/USD trended lower, down 1% at just around $68 a barrel and below its recent peak of $71.38.