The blue-chip Dow Jones hit a new record high tonight as President Joe Biden’s $1.9 trillion (£1.4 trillion) Covid-19 stimulus bill received final approval in the House of Representatives.
The bourse jumped 1.5 per cent over the course of trading to hit 32,297.81 after inflation fears subsided today.
In addition, the S&P 500 also ground out further gains, picking up 0.6 per cent. After its best day since early November yesterday, the tech-heavy Nasdaq was flat.
Biden’s is one of the largest packages of economic assistance in US history, and is expected to boost markets around the world.
The legislation, which provides $400bn in $1,400 “stimulus cheques” for Americans, will be signed into law on Friday, the White House said.
As on its first passage through Congress, the bill was approved on party lines, with no Republicans voting for the legislation.
The bill, which also provides $350bn in aid to state and local governments and an expansion of the child tax credit, was the subject of weeks of wrangling between the various bodies of the legislature.
However, with Democrats holding the majority in both the House of Representatives and the Senate, it passed with only a few adjustments.
It comes just in time, with current federal unemployment benefits set to expire at the end of this week.
“This is a historic day. It is the beginning of the end of the great Covid depression,” Democratic Representative Jan Schakowsky said.
The impact of the bill, which could help kickstart the US’ ailing economy, is expected to be felt around the world.
Earlier this week the Governor of the Bank of England Andrew Bailey said the impact would ripple through to the UK and improve its economic outlook.