Moderate gains push Nasdaq, S&P to new highs

Stocks pushed higher again on Wall Street on Wednesday, marking more milestones for the S&P 500 and the Nasdaq.

The S&P 500 added another 0.2%, its fifth gain in a row. Banks and energy companies led the way higher. Banks benefited from an increase in bond yields, which allow them to charge higher interest rates on loans. JPMorgan Chase climbed 2.1%. Trading has been subdued this week as company earnings reports wind down and traders wait to see if any news emerges from a Federal Reserve conference later this week. The yield on the 10- year Treasury note rose to 1.34%.

Industrial stocks and a variety of retailers, homebuilders and other companies that rely on consumer spending also helped lift the market. Deere & Co. was up 2.9%, D. R. Horton rose 1.8%, Domino’s Pizza added 1.8% and Caesar’s Entertainment picked up 3.8%. Health care and technology stocks lagged the rest of the market.

Small company stocks continued to do better than the broader market. The Russell 2000 index was up 0.8%.

The benchmark S&P 500 is within striking distance of a five-day winning streak and on pace for a 1.3% weekly gain after closing out last week with its first weekly loss in three weeks.

Investors seem to be in a holding pattern as Wall Street waits to hear from policymakers at the Federal Reserve later this week when they meet in Jackson Hole, Wyo., for their annual convention.

Traders are betting that Fed officials will continue to remain in “wait and see” mode regarding inflation, as most policymakers believe any inflation earlier this year would be temporary and the rise in COVID19 cases has made some economists worried. Meanwhile other Fed officials say the U.S. central bank needs to start winding down bond purchases to combat inflation.

Fed Chair Jerome Powell will speak Friday at the twoday gathering, which starts Thursday.

With little else to go on, and with the August slowdown in full effect, stocks are not likely to move much in the next few days.