Stocks reach record highs as investors hope for stimulus

Stocks rose on Wall Street, reaching more record highs, as investors remain optimistic that Washington will deliver another round of financial support for the economy and as vaccines continue to roll out to the public. The S&P 500 rose 0.6% Thursday. Wall Street has been hopeful that Congress will strike a deal on more relief just as the economy shows more signs of stalling. The Labor Department reported that the number of Americans seeking unemployment benefits rose to 885,000 last week, the most since September. Unemployment has been edging higher and retail sales have been hurt as tighter restrictions squeeze people and businesses.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

Stocks were steadily higher in afternoon trading Friday as investors remain optimistic that Washington will deliver another round of financial support for the economy as vaccines begin slowly rolling out to the public.

The S&P 500 rose 0.5% Thursday, hovering above its record high and staying within a tight range since the opening of trading. The Dow Jones Industrial Average rose 138 points, or 0.5%, to 30,292 as of 3:05 p.m. Eastern time. The Nasdaq gained 0.6%.

Wall Street has been more hopeful that Congress is getting closer to striking a deal that will give a financial lifeline to people and businesses. Democrats and Republicans have been locked in a partisan fight over the size and scope of any additional package, just as the economic recovery shows signs of stalling amid a surge in virus cases.

Stimulus cannot come soon enough for investors, and more importantly, for businesses like restaurants and theaters as well as the workers in those industries. The Labor Department, in another worrisome sign, reported that the number of Americans seeking unemployment benefits rose to 885,000 last week, the most...