The S&P 500 closed at a record high on Friday as optimism built among investors that a coming vaccine for the coronavirus will help end the shutdowns that have devastated the economy.
The benchmark index posted its second weekly gain in a row. Markets also welcomed the election of Joe Biden as president and the likelihood of Republican control of the Senate, setting up a divided government that will probably mean a continuation of business-friendly policies. Small-company stocks outpaced the rest of the market this week, reflecting greater confidence in the economy.
The S&P 500 added 48.14 points, or 1.4%, to 3,585.15, rising above the index’s previous closing record of 3,580.84 set back in early September. Both the Dow Jones Industrial Average and the Nasdaq composite closed higher as well, but did not close at records. The S&P 500 ended the week up 2.2%.
The Dow rose 399.64 points, or 1.4%, to 29,479.81 and the Nasdaq rose 119.70 points, or 1%, to 11,829.29.
The market index that had the best week was the Russell 2000, which is made up of smaller companies that tend to benefit the most when investors are positive on the economy. The Russell climbed 2.1% to close at 1,744.04, besting the closing high it reached in August 2018. The index jumped 6.1% this week.