Stimulus helps stocks hit record

Investors welcome president’s decision to sign stimulus bill.

Stocks began the final week of 2020 with more gains Monday, nudging the major U.S. indexes to record highs.

The S&P 500 climbed 0.9%, powered by gains in technology, communication services and consumer discretionary stocks. Companies thatwere hit the hardest by the pandemic, including restaurants, airlines and cruise operators, were among the biggest gainers. Treasury yields were mixed.

The broad rally came as investors welcomed the decision by President Donald Trump to sign a $900 billion coronavirus economic aid package. The package also includes $1.4 trillion to fund government agencies, averting a federal government shutdown that other wise would have started today.

The latest gains add to what has been a strong, record-shattering run for the stock market in recent weeks amid cautious optimism that coronavirus vaccinations will pave the way in coming months for the economy to escape from the grip of the pandemic.

“By and large, it’s a kind of broad-based optimism, so-farso-good on the vaccine rollout, and the stimulus bill to bridge the gap,” said Ross Mayfield, investment strategist at Baird, “It’s really just a continuation of the broader strength that we’ve seen over the last couple of months.”

The S&P 500 index rose 32.30 points to 3,735.36. The Dow Jones Industrial Average gained 204.10 points, or 0.7%, to 30,403.97, a record high. The Nasdaq composite climbed 94.69 points, or 0.7%, to 12,899.42, also a record high. The Russell 2000 index of smaller companies fell 7.70points, or 0.4%, to 1,996.25.

Wall Street had been hoping since lastweek that Trump would back down from his veto threat and clear theway for more financial support for hurting individuals and businesses.

Trump signed the measure into law late Sunday despite expressing frustration that $600 in coronavirus relief payments to the public weren’t bigger.

The president had asked for higher individual payments to Americans, something Democrats support but which is unlikely to get a vote in the Republican-held Senate.

The U.S. economy continues to deteriorate under widespread coronavirus outbreaks, infections and hospitalizations, so the promise of more relief for millions of Americans helps reduce uncertainty amid the re-imposition of travel and business curbs in response to a new coronavirus variant.