S&P 500 climbs to 4th straight quarterly gain

Stocks closed mostly higher on Wall Street Wednesday, clinching the 4th straight quarterly gain for the S&P 500.

The benchmark index rose 0.4% Wednesday, bringing its gain for the first three months of the year to 5.8%.

The gain for the index, which tracks large U.S. companies, was eclipsed by the 12.4% jump in a popular index tracking small-company stocks. Investors have favored smaller companies for months in anticipation that the U.S. economy will pick up this year as more people get vaccinated and as more pandemic restrictions are lifted.

Technology stocks powered much of Wednesday’s rally, reflecting solid gains by Apple, Microsoft and Nvidia. Companies that rely on consumer spending also helped lift the market, outweighing a pullback in financial, energy and materials stocks.

Stocks of smaller companies were once again on track for a strong showing. The stocks have outpaced the broader market on rising expectations for the economy. The Russell 2000 index climbed 1.8%. It’s up 13.2% for 2021 so far, nearly double the gain of the big stocks in the S&P 500.

Tech stocks and companies expected to deliver big growth in the future were helping to lead the way for the market. Apple climbed 2.2%, and Tesla rose 4.9%. It’s a reprieve for the group, which led the market earlier in the pandemic but has since lost momentum amid a sharp rise in Treasury yields.

The 10-year Treasury yield inched up to 1.73%, though it remains close to its highest level since before the pandemic rocked markets a year ago.