Stocks rise amid tug of war between hope and fear

Wall Street capped a day of choppy trading with modest gains for stocks Thursday, as the market’s tug of war continues between worries about the worsening pandemic in the present and optimism that a vaccine will rescue the economy in the future.

The S&P 500 rose 0.4 percent after spending much of the day flipping between small losses and gains. The benchmark index was coming off a 1.2 percent slide from the day before that pulled it away from its record of 3,626.91 set on Monday. The lateafternoon burst of buying erased nearly all of the S&P 500’s losses for the week.

Technology companies accounted for much of the rebound. Companies that rely on consumer spending and communications stocks also helped lift the market, outweighing losses in the utilities and health care sectors. Treasury yields fell, a sign of caution in the market.

The S&P 500 gained 14.08 points to 3,581.87. The Dow Jones Industrial Average added 44.81 points, or 0.2 percent, to 29,483.23. The index had been down 210 points. The tech-heavy Nasdaq composite climbed 103.11 points, or 0.9 percent, to 11,904.71.

Small-company stocks had a good showing. The Russell 2000 index picked up 14.82 points, or 0.8 percent, 1,784.13.

Wall Street’s huge November rally has slowed this week as fears about the economy buckling in the near term collide with hopes that stronger growth will arrive next year once effective coronavirus vaccines become available. A discouraging report on Thursday underscored the fears, showing that more U.S. workers filed for unemployment benefits last week than the week before. It was a worse number than economists expected and the first increase in five weeks.

With infections and hospitalizations on the rise across much of the country, governors and mayors are grudgingly issuing mask mandates, limiting the size of gatherings, banning indoor restaurant dining, closing gyms and restricting the hours and capacity of other businesses.