President Joe Biden clinched a bipartisan Senate infrastructure package, and U.S. stock index futures moved higher on Friday following a solid overnight performance for U.S. and global stocks, albeit oil lost some luster after a strong week.

After substantial fiscal stimulus helped the US economy grow at a 6.4 percent annualized rate in the first quarter, investors have been expecting for an infrastructure agreement to help continue the recovery. The plan is worth $1.2 trillion over the next eight years, with $579 billion in new spending.

But getting bipartisan agreement on the infrastructure deal required Biden to sacrifice some of his ambitions on schools, climate change mitigation and support for parents and caregivers, as well as tax increases on the rich and corporations.

Nordea Asset Management’s senior macro strategist Sebastien Galy said the deal was “likely significant enough for the economy without overheating it needlessly,” adding in a note that “growth expectations rise considerably.”

The S&P 500 e-minis jumped 0.1 percent on Thursday, after the S&P 500 gained 0.58 percent and the Nasdaq Composite gained 0.69 percent, bringing both indexes to new highs.

MSCI’s all-country index surged 0.22 percent, closing in on a new high set on June 15 and increasing the week’s advances to more than 2%.

After hitting record highs earlier this month, European markets were flat on the day and up 1% on the week.

The FTSE 100 index in the United Kingdom was up 0.1 percent, while the DAX in Germany was down 0.2 percent.

Monetary and fiscal stimulus around the world in response to the COVID-19 pandemic is boosting financial assets, despite an uneven pace of recovery between regions, said Eddie Cheng, head of international multi-asset portfolio management at Wells Fargo Asset Management.

“Bonds go up, equity goes up, commodities go up – that is very much a liquidity-driven market,” Cheng said.

Oil prices fell but remained on track for a fifth consecutive weekly gain, as growth in demand is expected to outstrip supply on bets that OPEC+ producers will be cautious in returning more output to the market from August.

West Texas Intermediate crude in the United States declined 0.27 percent to $73.10 per barrel, while Brent crude, the worldwide benchmark, fell 0.25 percent to $75.37 per barrel.

On Thursday, both benchmark contracts reached their highest levels since October 2018.

Markets are concerned about inflation as well as growth prospects.

On Friday, the core personal consumption expenditures index, which the Federal Reserve constantly monitors, is predicted to rise 3.4 percent year over year.

“I’m not convinced that (inflation) is only going to be a passing fad. I believe it will last a long time “Drew Horter, CIO of Tactical Fund Advisors in Cincinnati, predicted as much.

“It’s a bigger problem than the Fed’s actually letting us know.”

BofA expects U.S. inflation to remain elevated for two to four years, and only a market crash will prevent central banks from tightening in the next six months, the investment bank’s top strategist Michael Hartnett said in a note on Friday.

Investors continued to consider the prospect of Fed tightening in the face of continuing inflation, with the dollar index down 0.1 percent at 91.753.

The Japanese yen remained unchanged at 110.76 yen, while the euro rose 0.1 percent to $1.1942 yen.

After the Bank of England kept the scale of its stimulus program untouched and left its benchmark interest rate at an all-time low of 0.1 percent on Thursday, sterling was down 0.1 percent at $1.3912, on track for its worst month against the dollar since September.

Benchmark 10-year U.S. Treasuries were recently at 1.4901 percent, up from 1.487 percent on Thursday, after rates fell following the introduction of the infrastructure bill.

The 10-year yield in Germany, the euro zone’s benchmark, increased to -0.171 percent.

MSCI’s broadest index of Asia-Pacific stocks outside of Japan gained 1%, with Chinese blue chips up 1.63 percent.

Gold futures were up 0.39 percent at $1,782.58 an ounce, putting it on course for its first weekly gain in four weeks.