Late stumble leaves S&P 500 just short of a record high

U.S. stock indexes closed mostly higher Thursday after a late dip pulled the S&P 500 just short of its third straight all-time high.

The benchmark index is on track for a weekly gain as Wall Street continues to coast following its rocket ride last month powered by hopes for coming COVID-19 vaccines. The Nasdaq composite set a record high for the second straight day. Treasury yields mostly declined, a reversal from earlier in the week.

Economic reports that were better than expected helped support stocks. One report showed that growth in the U.S. services sector, including healthcare and retail, was slightly stronger last month than economists expected. A separate report said fewer U.S. workers filed for unemployment benefits last week than forecast, though economists cautioned the number might have been distorted by the Thanksgiving holiday.

Investors have also been encouraged by signs that Democrats and Republicans might reach a deal to provide more financial support for the economy.

“There’s a lot of optimism being built into the market right now,” said Sam Stovall, chief investment strategist at CFRA. “Investors are sort of keeping their fingers crossed that we come up with a stimulus package, no matter the size.”

The S&P 500 slipped 2.29 points (0.1% ) to 3,666.72. The Dow Jones Industrial Average gained 85.73

(0.3%) to 29,969.52. The Nasdaq composite added 27.82 (0.2%) to 12,377.18. Small-company stocks made out better than the broader market. The Russell 2000 index picked up 10.67 (0.6%) to 1,848.70.