Investors are piling into infrastructure stocks after House passes Biden plan

Stocks tied to infrastructure moved higher on Monday morning after the House of Representatives passed a $1 trillion bill over the weekend, giving President Joe Biden one of his signature achievements and rewarding investors who bet on his plan.

The strength for those infrastructure stocks showed up in the Global X US Infrastructure Investment ETF, which trades under ticker PAVE, as it gained 1.5% and hit an all-time high in the opening minutes of the session. The fund's top holdings include stocks like Nucor and Vulcan Materials, which moved solidly higher on Monday morning.

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The need for significant infrastructure spending has for years been a talking point in Washington, but efforts had largely fallen flat before last week.

"Investors have waited for a significant step-up in infrastructure spending for decades, and from Obama's 'shovel-ready projects' to Trump's 'infrastructure week' they have largely been disappointed. Accordingly, we view this generational investment as a significant catalyst for growth for a number of our stocks," Citi's Anthony Pettinari said in a note to clients.

United Rentals, another large component of the ETF, rose 2% in morning trading on Monday and could be in a particularly strong position thanks to the new bill, Bernstein analyst Chad Dillard said in a note to clients.

"With >$500B of incremental infrastructure spend committed, contractors' ability to take on additional work will be limited by their balance sheets, which will incentivize more rental than equipment purchase. URI is best positioned to benefit," the Bernstein note said.

The rally for infrastructure stocks extended beyond PAVE. The ETF's strong showing came despite the fact that it does not include Caterpillar, which rose nearly 4%.

-CNBC's Michael Bloom and Gina Francolla contributed to this story.

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