US stocks rallied to records on Wednesday on encouraging earnings reports and continued optimism that new leadership in Washington will mean more support for the struggling economy.
The S&P 500 was 1.3 per cent higher at 3,848 points in early afternoon trading, topping its record closing level of 3,824.68 set earlier this month. The Dow Jones Industrial Average was up 0.7 per cent, at 31,157 and the Nasdaq composite was 1.8 per cent higher.
Joe Biden took the oath of office to become president of the United States, with a flurry of executive actions at the ready. He has also pitched a plan to pump US$1.9 trillion more into the struggling economy, hoping to act quickly as his Democratic party takes control of the White House and both houses of Congress.
The hope on Wall Street is that such stimulus will help carry the economy until later this year, when more widespread COVID-19 vaccinations get daily life closer to normal. Such hopes have helped stocks and Treasury yields rise, even as the worsening pandemic digs a deeper hole for the economy. Spiralling coronavirus counts and deaths have more workers applying for unemployment benefits and shoppers feeling less confident.
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