Dow scales record closing high as bond yields fall

The Dow Jones Industrial Average soared to a record on Wednesday after falling bond yields and a new stimulus package spurred investors to snap up stocks that will benefit from a faster recovery from the pandemic.

The blue-chip Dow jumped 464.28 points, or 1.5%, to close at a record high of 32,297.02. The S&P 500 added 0.6% to 3,898.81, led by energy and financials. The Nasdaq Composite closed less than 0.1% lower at 13,068.83 after gaining as much as 1.6% earlier in the day.

House Democrats passed a $1.9 trillion coronavirus relief bill Wednesday, sending it to President Joe Biden, who is expected to sign Friday. Biden said checks of up to $1,400 should start going out this month.

Meanwhile, tame inflation data out Wednesday eased worries about rising prices that have jolted yields higher and unnerved equity investors. The 10-year Treasury yield fell 2 basis point to 1.52%.

Data showed consumer prices rose 1.7% in February from the same month in 2020. The gauge had risen 1.4% in January. The underlying measure of price rises, which strips out food and energy, rose 1.3% on a year-on-year basis, down 0.1% point compared with the previous month.

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