Wall Street’s main markets hit new record highs.
US markets hit all-time highs tonight, with investors piling into economically sensitive stocks on hopes of more fiscal aid to lift the world’s biggest economy from a coronavirus-driven slump.
The S&P 500 was up 0.1 per cent and the Dow Jones gained 0.31 per cent.
That took the Dow past 31,500 points for the first time ever, although there were signs that the rally was slowing.
The S&P 500 banking also rose by 3.2 per cent as the yield on 10-year U.S. Treasuries hit their highest since February 2020.
Conversely, utilities and real estate were among the largest losers among S&P 500 sectors, and technology stocks also slipped.
Utilities and real estate, because of their perceived safety, due to steady earnings and high dividend yields, tend to move in tandem with Treasuries.
Conor Campbell of Spreadex said: “The Dow’s bull run has been predicated on the incoming American Rescue Plan – i.e. $1.9 trillion in stimulus – lined by the Biden administration.
“However, there are potential dangers lurking to harm the Dow. Firstly, we are still in a pandemic, and the stimulus package isn’t going to magic that away.
“Secondly, though around 12 per cent of the American population has had at least their first dose of the Covid-19 vaccine, shortages could start to undermine the effort to inject the nation, with vaccination sites in California recently forced to close due to a lack of preparations.”