Steel, Copper Stocks Sidestep Selloff as Trump Backs Infrastructure Spending

By Yasin Ebrahim

Investing.com – Wall Street is swinging lower on Tuesday, but copper and steel stocks are sidestepping the selling on hopes a massive ramp-up in infrastructure spending will drive growth.

"With interest rates for the United States being at ZERO, this is the time to do our decades long awaited Infrastructure Bill,” Trump tweeted.

"It should be VERY BIG&BOLD, Two Trillion Dollars, and be focused solely on jobs and rebuilding the once great infrastructure of our Country! Phase 4,” he added.

United States Steel (NYSE:X) rose 9%, Commercial Metals Company (NYSE:CMC) 5% and Cleveland-Cliffs (NYSE:CLF), also up 9%, were among the biggest gainers.

It is not the first time Trump has pushed for a massive increase in infrastructure spending. In 2016, Trump vowed to seek $1 trillion in infrastructure spending, but bipartisan support fell through as both sides of aisle failed to agree on how much federal funding would be included.

But with the U.S. widely expected to be headed for a deep recession, Trump may find his plans for infrastructure spending could be warmly received.

House Majority Leader Nancy Pelosi, a day earlier, said a "Phase 4" coronavirus stimulus package should include a bipartisan deal on infrastructure spending.

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