bay bridge, the harrison, luxury condo, san francisco

How Markets Could Respond to a Biden Infrastructure Bill



The Potential for Bipartisan Support

As President Biden begins his first full week in office, many investors are hoping that a substantial infrastructure bill could be coming soon. Democrats hold only a slim majority in the House and Senate, but an infrastructure bill could gain bipartisan support if lawmakers see it as a way to create jobs and give the battered economy a lift.

This infrastructure spending could take a variety of forms. Many expect to see investments in traditional infrastructure like roads, as well as in more modern initiatives like alternative energy and 5G wireless broadband networks.

Roads and Construction

Spending on roads and other traditional infrastructure could give companies like Caterpillar (CAT) and Deere (DE) a boost. These heavy machinery suppliers have struggled over the past year. Many businesses have put off purchasing expensive equipment due to economic downturn and uncertainty.

Meanwhile, Chinese heavy equipment makers such as Sany Heavy Industry Co. and Zoomlion Heavy Industry Science & Technology Co. have outpaced their US counterparts recently. Though construction in China was interrupted at certain points in 2020 due to the pandemic, it seems to have bounced back more quickly than construction stateside.

Green Energy and 5G Networks

Investments in green energy and 5G networks could give other industries a lift. President Biden has proposed setting up 500,000 electric vehicle chargers across the country. This could benefit the entire EV industry as charging logistics currently pose a significant roadblock for EV makers trying to compete against traditional automobiles.

Meanwhile, many expect that funding for 5G networks will be a priority for the Biden administration as lawmakers work to make sure Americans have equal access to digital resources. This could benefit tower company SBA (SBA), utilities provider Clearway (CWEN), and the tech industry as a whole.

Things are changing daily within the financial world. Sign up for the SoFi Daily Newsletter to get the latest news updates in your inbox every weekday.

Sign up


Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS21012602


All your finances.
All in one app.

App Store rating

Download on the App Store Get it on Google Play

ABOUT SoFi SoFi helps people achieve financial independence to realize their ambitions. Our products for borrowing, saving, spending, investing, and protecting give our more than one million members fast access to tools to get their money right. SoFi membership comes with the key essentials for getting ahead, including career advisors and connection to a thriving community of like-minded, ambitious people. For more information, visit SoFi.com. Want an easy and convenient way to manage your financial life? Get the SoFi app. For iOS and Android.


TLS 1.2 Encrypted
Equal Housing Lender