NEW YORK, Feb 8 Reuters Wall Street set record closing highs on Monday as stimulus prospects and ongoing vaccine deployment boosted investor optimism over the pace of economic recovery from the pandemic recession.
All three major U.S. stock indexes advanced, with the SP 500 and the Dow posting their sixth consecutive gains, their longest winning streak since August. Smallcaps, often seen as reopening plays, outperformed their larger peers.
Investors are starting to play the economy opening up and the vaccine starting work, said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago. And maybe they can go to a baseball game this summer.
Still, the extended rally provides some cause for concern.
Stocks have been overvalued for much of the past year, Nolte added. And the things were seeing now, with GameStop and Bitcoin, those are signs of speculation, not investing.
Oil prices rose to their highest in over a year due to supply cuts and hopes for a stimulusdriven demand rebound, giving a solid boost to energy stocks.
Treasury Secretary Janet Yellen said if Congress approves the presidents 1.9 trillion fiscal aid package, the United States could return to full employment next year.
That package came closer to passage on Friday when lawmakers approved a budget outline that would enable Democrats to muscle it through Congress without Republican support.
Vaccine deployment, meanwhile, pushes ahead in United States, with at least 32,780,860 doses…