Wall Street Stocks rise as $1.9 trillion stimulus package signed into law

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

The Dow Jones Industrial Average climbed 0.6% to 32,485.59, concluding at an all-time high for the second straight day.

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The broad-based S&P 500 gained 1.0% to 3,939.34, also a record, while the tech-rich Nasdaq Composite Index jumped 2.5% to 13,398.67.

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 programs for small businesses and low-income families.

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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 catalyze 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%, Google parent Alphabet 2.9% and Netflix 3.7%. 

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

AMC Entertainment advanced 4.4% after executives offered an optimistic outlook on the movie theater business as coronavirus vaccines become more widespread.