Stocks climb on Wall Street, breaking losing streak

Stocks notched broad gains on Wall Street Tuesday as renewed optimism that Washington will deliver more aid to the struggling economy put investors in a buying mood.

The S&P 500 climbed 1.3 percent, snapping a four-day losing streak. Technology companies powered much of the rally, which helped push the tech-heavy Nasdaq composite to an all-time high. An index of smallcompany stocks also set a record high. Treasury yields rose.

Negotiations between Democrats and Republicans on another round of coronavirus relief have been dragging on for weeks. Fresh signs of cooperation Tuesday appeared to boost the market’s confidence that Washington can get past its partisan divide and hammer out a deal. A bipartisan group of lawmakers unveiled a detailed proposal. Meanwhile, House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin held another round of talks.

“The most important thing is this idea of a fiscal stimulus package actually seeing some positive chance of being approved,” said Tom Martin, senior portfolio manager with Globalt Investments.

Also helping to steady the market were hopes for an improving economy next year as COVID-19 vaccines become widely distributed. A vaccine candidate developed by Moderna and the National Institutes of Health may be on the cusp of regulatory approval after the Food and Drug Administration said its preliminary analysis confirmed its safety and effectiveness. It would join the nation’s first vaccine, which just began rolling out. Hundreds of hospital and health care facilities will get their first shipments Tuesday of the vaccine developed by Pfizer and BioNTech.

The S&P 500 rose 47.13 points to 3,694.62. The Dow Jones Industrial Average gained 337.76 points, or 1.1 percent, to 30,199.31.

The Nasdaq climbed 155.02 points, or 1.3 percent, to 12,595.06. That eclipsed the index’s last all-time high set a week ago.

About 90 percent of the companies in the benchmark S&P 500 notched gains, led by technology, financial and health care stocks.

Small-company stocks did especially well, a sign that investors are feeling more optimistic about prospects for the economy. The Russell 2000 index picked up 45.91 points, or 2.4 percent, to 1,959.76, a record high.

The Russell 2000 trailed the broader market for most of this year as investors bet that larger companies, especially Big Tech stocks, would be better suited to weather the economic fallout from the pandemic. Now it’s up 17.5 percent for the year, while the S&P 500 is up 13.4 percent.