S&P 500 closes at record as possible vaccine lifts markets

(AP) — The S&P 500 closed at a record high on Friday as optimism built among investors that a coming vaccine for coronavirus will help end the shutdowns that have devastated the economy.

The benchmark index rose 1.4%. Markets also welcomed the election of Joe Biden as president and the likelihood of Republican control of the Senate, setting up a divided government that will probably mean a continuation of business-friendly policies.

Small-company stocks outpaced the rest of the market this week, reflecting greater confidence in the economy.

The Russell 2000, which tracks smaller companies, closed at a record high for the first time since August 2018.