Stocks hit new highs on hopes of stimulus

NEW YORK — Major U. S. stock indexes climbed to new highs Thursday as investors remained optimistic that Washington will deliver another round of f inancial support for the economy and as a COVID- 19 vaccine continues to be rolled out to the public.

The Standard & Poor’s 500 index rose 0.6%, with technology and healthcare stocks powering much of the market’s broad rally. The index, which is a benchmark for many 401( k) accounts, has now set 31 record highs this year. The Dow Jones industrial average and Nasdaq composite also hit new highs. Treasury yields moved broadly higher, a sign of bond traders’ confidence in the economy.

Optimism that Congress will deliver more f inancial aid to people and businesses most hurt by the pandemic, and hopes that the rollout of coronavirus vaccinations will pave the way for an economic recovery next year, have helped keep investors in a buying mood.

“Investors are being hopeful because of that, even though we’re seeing a widening lockdown threat from cities, states and countries,” said Sam Stovall, chief investment strategist at CFRA.

The S& P 500 rose 21.31 points to 3,722.48. It’s the index’s third straight gain. The Dow picked up 148.83 points, or 0.5%, to 30,303.37. The Nasdaq extended its winning streak to a fourth straight day, gaining 106.56 points, or 0.8%, to 12,764.75.

Traders continued to bid up shares in smaller companies. That pushed the Russell 2000 small- cap index up 25.32 points, or 1.3%, to 1,978.05, a record high. The index is on track for a gain of 8.7% this month, while the S& P 500 is up 2.8%.

Wall Street has been more hopeful that Congress is getting closer to a deal that will give a financial lifeline to people and businesses. Democrats and Republicans have been locked in a partisan f ight over the size and scope of any additional package.

New stimulus aid cannot come soon enough for investors, and more important, for businesses such as restaurants and theaters as well as their workers. The Labor Department, in another worrisome sign, reported that the number of Americans seeking unemployment benefits rose to 885,000 last week, the most since September.

Investors received more encouragement from the Federal Reserve, which helped shore up the markets early in the pandemic. The central bank has again pledged to keep buying bonds until the economy makes substantial progress. Still, the Fed has said that more financial support from Washington is crucial for a continued recovery.

Treasury yields moved higher. The yield on the 10year Treasury rose to 0.93% from 0.90% late Wednesday.