Stocks hit records as hopes rise for stimulus

Stocks reached more record highs Thursday on Wall Street as investors remain optimistic that Washington will deliver another round of financial support for the economy and as vaccines continue to roll out to the public.

The S&P 500 rose 0.6%, up 21.31 points to close at 3,722.48. The Dow Jones Industrial Average finished up nearly 0.5%, with a 148.83 point gain to 30,303.37. And the Nasdaq Composite index finished up more than 0.8% with a 106.56 point gain to 12,764.74

Wall Street has become more hopeful that Congress is getting closer to striking a deal that will give a financial lifeline to people and businesses. Democrats and Republicans have been locked in a long partisan fight over the size and scope of any additional package, just as the economic recovery shows signs of stalling amid a surge in virus cases across the country.

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 it can only do so much to tide over the economy and that more financial support from Washington is critical for a continued recovery.

The gains on Thursday were broad and came from nearly every sector in the S&P 500, with the exception of the energy and telecommunications services. More conservative investments like consumer staples and utilities were the biggest gainers in the market.

Traders continued to bid up shares in smaller companies. That pushed the Russell 2000 small-caps index 1% higher. The index is on track for a gain of more than 8% this month, while the S&P 500 is up around 2%.

Treasury yields rose broadly, a sign of investors’ confidence in the economy. The yield on the 10-year Treasury rose to 0.93% from 0.90% late Wednesday.