Stocks marched broadly higher on Wall Street Wednesday, briefly nudging the S&P 500 above its all-time closing high set in February, before the coronavirus pandemic led to a historic market plunge the next month.
The benchmark index notched a 1.4% gain, its eighth in nine days. It ended within 0.2% of its record high from Feb. 19, when the coronavirus seemed like only a faraway worry for Wall Street.
The S&P 500 rose 46.66 points to 3,380.35. The Dow Jones Industrial Average gained 289.93 points, or 1%, to 27,976.84. The Nasdaq composite, which is heavily weighted with technology stocks, climbed 229.42 points, or 2.1%, to 11,012.24. The Russell 2000 index of small company stocks picked up 8.15 points, or 0.5%, to 1,583.25.
Big technology stocks led the way higher once again. Health care and communication services stocks also had a strong showing. The rally came after gains for stocks across Europe and much of Asia, while Treasury yields continued their sharp increase after a report on inflation came in higher than expected for the second straight day.
Indexes in Europe closed broadly higher. Asian markets were mixed.
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The U.S. stock market is on the edge of erasing the last of the losses taken after the coronavirus pandemic crushed the economy into recession, even though the economy is still hobbling despite some recent improvements. In March, the S&P 500 had been down nearly 34% from its record.
Much of the rebound has been the result of large amounts of support from the Federal Reserve, which has slashed interest rates to nearly zero and propped up far-ranging corners of the bond market to keep the economy's head above water. The ultralow interest rates mean investors are getting paid very little to own bonds, which pushes some into stocks, boosting their prices.
Congress also has offered unprecedented amounts of aid, though it's hit a seeming impasse in negotiations to continue its assistance.
"Economic data is coming in much better than expected; the earnings season is much better than expected," said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors.
Wall Street's gains on Wednesday were widespread, with two-thirds of the stocks in the S&P 500 higher.
Tesla jumped another 13.1% Wednesday after announcing a 5-for-1 split of its stock in hopes of making the price of each share more affordable to investors. The stock has surged past $1,400 after starting the year a little below $420.
The yield on the 10-year Treasury note rose to 0.67% from 0.66% late Tuesday. It's jumped sharply since sitting at 0.57% late Monday.
A report on Wednesday showed that inflation remains very low, but it ticked up more last month than economists expected.
Other risks also continue to loom over the market, including worsening tensions between the United States and China, which are the world's largest economies.
The recent rise in yields has also slowed the supersonic ascent for gold recently. The metal's price has shot to record highs this year, benefiting from increased demand by investors looking for safety amid the pandemic but not interested in the low yields offered by bonds.
Gold for December delivery rose $2.70 to $1,949.00 an ounce a day after plunging by more than $90 an ounce.
Oil prices rose. Benchmark U.S. crude oil for September delivery rose $1.06 to settle at $42.67 a barrel Wednesday. Brent crude oil for October delivery rose 93 cents to $45.43 a barrel.
Information for this article was contributed by Elaine Kurtenbach of The Associated Press.
