Dow, S&P 500 end at records, extending rally

Wall Street stock indices ended at fresh records on Thursday as investors cheered the new US$1.9 trillion US economic relief package, which has bolstered confidence in the country’s rebound.

The Dow Jones climbed 0.6 percent to 32,485, concluding at an all-time high for the second straight day.

The S&P 500 gained 1.0 percent to 3,939, also a record, while the Nasdaq jumped 2.5 percent to 13,398.

US President Joe Biden signed the eagerly-anticipated economic relief package, which includes stimulus funds for households, an extension of unemployment benefits and myriad other programmes for small businesses and low-income families.

The legislation – enacted as the US coronavirus vaccination campaign accelerates – has helped spark “fear of missing out” on further equity gains among investors.

“We have so much good news about to hit us for the next two years, that any pullback is probably an opportunity,” said Maris Ogg of Tower Bridge Advisors.

Some economists fear the federal largess will catalyse a big jump in inflation, potentially compelling a sudden shift in Federal Reserve policy.

But Ogg views such fears as overblown, saying “there’s still plenty of capacity in the world, and I doubt that we will have too much money chasing too few goods for very long.”

Large technology companies – which have been under pressure in recent weeks – had a strong session. Facebook won 3.4 percent, Google parent Alphabet 2.9 percent and Netflix 3.7 percent.

But Oracle fell 6.5 percent on disappointment over its earnings forecast, despite reporting better-than-expected quarterly results.

AMC Entertainment advanced 4.4 percent after executives offered an optimistic outlook on the movie theatre business as coronavirus vaccines become more widespread. (AFP)