Dow closes at record high as House passes COVID-19 relief bill

The Dow Jones Industrial Average rallied to a new record Wednesday after the House approved President Biden’s $1.9 trillion COVID-19 relief bill and new data showed inflation staying mild.

The Dow closed with a gain of roughly 464 points, rising 1.5 percent to 32,297.02. The S&P 500 index rose 0.6 percent and the Nasdaq composite stayed roughly even with Tuesday’s close.

Stocks of companies hindered by the pandemic rose throughout the day while technology shares largely took losses amid rising hopes for a strong rebound from the coronavirus recession.

The House on Wednesday sent Biden’s coronavirus package to the White House for his signature, cementing a major win and a top legislative priority for Democrats. 

“I want to thank Speaker [Nancy] Pelosi [D-Calif.] and the House of Representatives for passing the bill that I will be signing into law shortly. This bill represents a historic, historic victory for the American people. I look forward to signing it later this week,” Biden said. “Everything in the American Rescue Plan addresses a real need.”

The president is slated to sign the bill Friday and the first direct payments authorized by the new measure are expected to go out next week. The bill also extends expanded unemployment benefits, provides hundreds of billions in aid to state and local governments and small businesses and bolsters funding for vaccine distribution.

The release of new federal data showing just 0.4 percent inflation in February also allayed fears of rampant prices increases that roiled the stock market earlier this month.