Hopes for vaccine lift S&P 500 to record

The S&P 500 closed at a record high Friday as optimism built among investors that a coming vaccine for the coronavirus will help end the shutdowns that have devastated the economy

Markets also welcomed the election of Joe Biden as president and the likelihood of Republican control of the Senate, setting up a divided government that will probably mean a continuation of businessfriendly policies. Smallcompany stocks outpaced the rest of the market this week, reflecting greater confidence in the economy.

The S&P 500 rose 48.14 points, or 1.4 percent, to 3,585.15, moving above the index’s previous closing recordof 3,580.84, set in early September. The Dow Jones Industrial Average and the Nasdaq composite closed higher as well, but not at records. The S&P 500 ended the week up 2.2 percent.

The Dow rose 399.64 points, or 1.4 percent, to 29,479.81, and the Nasdaq rose 119.70 points, or 1 percent, to 11,829.29.

The market index that had the best week was the Russell 2000, which is made up of smaller companies that tend to benefit the most when investors are positive on the economy. The Russell climbed 2.1 percent to close at 1,744.04, besting the closing high it reached in August 2018. The index jumped 6.1 percent this week.

The market was lifted by energy, real estate and companies that rely on consumer spending, while big technology companies floated between gains and losses. One exception in technology was Cisco, which jumped 7.1 percent on better-thanexpected earnings.

Reports of surging COVID-19 cases had a sobering effect on markets earlier in the week; they had advanced on hopes for a vaccine and expectations that pro-business policies will continue after last week’s U.S. elections. The concern was that even if a vaccine is finalized soon, it will take months for it to be distributed throughout the U.S. and around the globe.

Coronavirus caseloads are rising at a faster pace in in almost every state in the U.S. In NewYork, the state is ordering restaurants, bars and gyms to close at 10 p.m. NewYork was devastated by the virus earlier this year but seemed to have gotten it largely under control. In Europe, several governments have brought back even tougher restrictions that will likely restrain the economy.

One sign of consumer worry regarding the rising infections was reflected in the University of Michigan’s consumer sentiment survey, which fell to a reading of 77 from October’s 81.8. That figurewas below economist expectations.