MercoPress. South Atlantic News Agency

The S&P 500 index at record high, while US congress debates a relief for the US economy

Republicans and Democrats in Congress remained unable to reach agreement on fresh relief for a pandemic-hit U.S. economy

The S&P 500 climbed to a record high close on Wednesday and the Nasdaq Composite Index dipped as investors weighed upbeat vaccine developments and a potential coronavirus fiscal package against a bleak private jobs report.

Republicans and Democrats in Congress remained unable to reach agreement on fresh relief for a pandemic-hit U.S. economy, although some investors said bad economic news could spur policy makers to push harder for a deal.

U.S. House Majority Leader Steny Hoyer also expressed hope that a deal could be reached “in the next few days.”

Signs of progress in the race to distribute a vaccine have driven U.S. stocks higher in recent days. In the latest upbeat development, Pfizer Inc and BioNTech’s COVID-19 vaccine got the green light for use in Britain, the first Western country to approve a shot for COVID-19. Pfizer jumped 3.5% and BioNTech surged about 6%.

Underscoring the argument for fiscal stimulus, data showed private payrolls increased less than expected in November, likely as soaring new infections and business restrictions hampered the labor market’s recovery.

Moreover, the Federal Reserve’s Beige Book report showed “little or no growth” in four of the central bank’s 12 U.S. districts and only modest growth elsewhere in recent weeks.

Any potential sign of a worsening labor market in Friday’s broader jobs report could put more pressure on Congress to agree on a stimulus package, said Ross Mayfield, an investment strategy analyst at Baird.

Positive updates on coronavirus vaccine have helped investors raise bets on a swift economic rebound next year, powering the S&P 500 and Nasdaq to record highs on Tuesday.

A rotation into value stocks continued, with the S&P 500 financial index and energy index stocks gaining, while consumer staples dropped. The Dow Jones Industrial Average rose 0.2% to end at 29,883.79 points, while the S&P 500 gained 0.18% at 3,669.01. The Nasdaq Composite slipped 0.05% to 12,349.37, dragged by a 2.7% slide in Tesla Inc.

Getting a generous stimulus package through Congress is a top priority, President-elect Joe Biden said in an interview with the New York Times. He also said he would not immediately cancel the Phase 1 trade deal that Trump struck with China.