NEW YORK, RAW – Wall Street has risen, with both the blue-chip Dow and benchmark S&P 500 closing at record highs, as economically sensitive value stocks gained with the US Senate’s passage of a $US1 trillion ($A1.4 trillion) bipartisan infrastructure package.

The bill, which now heads to the House of Representatives, could provide the country’s biggest investment in decades in roads, bridges, airports and waterways.

Senators also began voting on a follow-up $US3.5 trillion spending package that Democrats plan to pass without Republican votes.

“The market is looking at it as part one is a done deal, the market is OK with that,” said Ken Polcari, managing partner at Kace Capital Advisors in Boca Raton, Florida.

“I do not believe the market is going to be OK with $US3.5 trillion but there is still the possibility they are able to block it, or slow it, and have more conversation so the market isn’t focusing on that one yet.”

Energy, industrials and materials, which stand to benefit from an economic recovery, were among the top performing S&P sectors while names such as Caterpillar, Deere and Vulcan Materials each rose about 2.0 per cent as they are poised to reap the gains of infrastructure projects.

The iShares US Infrastructure ETF rose 1.45 per cent and the Global X US Infrastructure Development ETF advanced 2.19 per cent.

Energy shares were buoyed as recently beaten down crude prices jumped nearly 3.0 per cent.

The Dow Jones Industrial Average rose 162.82 points, or 0.46 per cent, to 35,264.67, the S&P 500 gained 4.4 points, or 0.10 per cent, to 4,436.75 and the Nasdaq Composite dropped 72.09 points, or 0.49 per cent, to 14,788.09.

With new coronavirus cases rising in the United States, progress on the infrastructure package should support the recovery in the world’s largest economy.

The rapid spread of the Delta variant has pushed COVID-19 cases and hospitalisations to a six-month high, with cases averaging 100,000 for three days in a row – up 35 per cent over the past week.

Investors will also watch inflation numbers this week for more insight into the Federal Reserve’s monetary policy plans after comments from two Fed officials on Monday that inflation was already at a level that could satisfy one portion of the requirement for the beginning of rate hikes.

AMC Entertainment gave up early gains and ended the session 6.07 per cent lower even after beating second-quarter revenue estimates as movie-goers returned to its theatres after a year of closures and restrictions.

Kansas City Southern gained 7.47 per cent after Canadian Pacific Railway Ltd raised its offer for the US railway operator by about $US2 billion to $US27.29 billion.

Advancing issues outnumbered declining ones on the NYSE by a 1.19-to-1 ratio; on Nasdaq, a 1.16-to-1 ratio favoured decliners.

The S&P 500 posted 50 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 82 new highs and 95 new lows.

Volume on US exchanges was 8.99 billion shares compared with the 9.61 billion average for the full session over the last 20 trading days.