U.S. stocks showed further signs of stability Wednesday as investors cheered corporate earnings and the prospect of more fiscal stimulus.
The S&P 500 ticked up 0.1%. The Dow Jones Industrial Average slipped around 51 points. The tech-heavy Nasdaq Composite Index rose 0.4% after Alphabet reported strong sales growth late Tuesday.
Stock markets have rallied this week, shaking off concerns about stretched valuations, a sharp run-up in prices for a handful of stocks and silver, a weak economic backdrop and the threat of new coronavirus variants. Investors have focused instead on better-than-expected corporate results, a decline in new coronavirus cases and bets that President Biden will deliver more fiscal spending in coming weeks.
“The last two days have seen the return of the feeling that we still have monetary stimulus in the background and the prospect of an additional stimulus package to come,” said Seema Shah, chief strategist at Principal Global Advisors. “The path ahead isn’t a smooth one, but we think it is an upward one.”
Shares in Alphabet climbed 6.6% after the parent of Google said late Tuesday that it had booked record revenue in the fourth quarter.