The Standard & Poor’s 500 index inched up less than 0.1% after flipping between small gains and losses for much of the day. About 62% of companies in the index rose, with energy sector stocks notching the biggest gain as crude oil prices rose. Companies that rely on consumer spending also helped lift the market, outweighing declines in healthcare, communications and technology stocks.
Markets have been charging higher recently amid a wave of optimism about the future. The rollout of coronavirus vaccines has Wall Street anticipating a big rebound for the economy and corporate profits as daily life starts to return to normal later this year. Expectations are also rising for another round of stimulus coming for the economy because Democrats are set to soon have control of the White House, Senate and House.
The Fed has held short-term interest rates at a record low of nearly zero and bought all kinds of bonds in its drive to help the economy. Its next policy meeting on interest rates is in two weeks. Stocks of smaller companies also rallied. The Russell 2000 gained 36.95 points, or 1.8%, to 2,127.96, a record high. Small companies have been leading the market in recent weeks as investors see them benefiting much more from a healthier economy than behemoth companies that managed to largely sustain themselves through the pandemic.