Real estate shares rose on Tuesday after Spain’s government announced it was stepping up spending to address an economic slowdown.
The Dow Jones Industrial Average gained 1.4% to 20,943.10.
The Nasdaq Composite index of publicly traded companies gained 0.3% to 5,902.21.
Real estate is one of the main sectors of Spain’s growth story.
In November, the economy contracted for the first time in six years.
“This is the beginning of a new phase,” Economy Minister Josep Diaz said in a speech, as Spain is the first European country to see a full-blown recession.
He warned that the economic downturn is not over.
“The government has no intention of putting up walls to block the progress of recovery,” he said.
The European Central Bank (ECB) is currently buying assets from Spanish banks and other financial institutions.
Spain has been trying to bring down its debt by selling off the national debt and reducing its public debt to a fraction of its pre-crisis level.
The Spanish government plans to cut spending by 5% of its GDP this year.
Inflation is running at 2% and a government debt of around 250 billion euros ($270 billion) is a challenge for the country to overcome.
The government also plans to introduce a national carbon market that will be financed by a levy on carbon dioxide emissions.
Spain’s biggest real estate sector is Spanish Nationwide and National Bank of Madrid.
The company owns several buildings in Madrid and has a real estate portfolio worth around 10 billion euros.
Real Estate Investment Trust (REIT) stock rose 1.5% to 3,788.80.
It has a market capitalization of nearly 1.3 trillion euros.
The sector has benefited from strong demand for residential properties.