By Joe Wallace Close Joe Wallace and Michael Wursthorn Close Michael Wursthorn Updated Dec. 17, 2020 4:02 pm ET U.S. stocks rose to record levels Thursday as lawmakers closed in on a deal to extend a new financial lifeline to businesses and individuals that could support the economy through the coronavirus pandemic’s deadliest phase. All three major stock benchmarks hit closing records after notching intraday highs in morning trading. The Dow Jones Industrial Average added 148 points, or 0.5%, to 30301, as of the 4 p.m. ET close of trading. The S&P 500 climbed 0.6% to 3722, while the Nasdaq Composite gained 0.8% to 12764, both records. Newsletter Sign-up Markets A pre-markets primer packed with news, trends and ideas. Plus, up-to-the-minute market data. Negotiations continued Thursday on a roughly $900 billion coronavirus relief deal that includes another round of direct payments to households. After months of gridlock, the emerging agreement represented a breakthrough at a critical time in the pandemic. Vaccine distribution is under way but hospitalizations are hitting record highs. Lawmakers initially hoped to approve the relief bill alongside a broad government spending package before current government funding expires just after midnight on Saturday. But Congressional leaders are now considering passing a stopgap spending measure to give themselves more time to wrap up negotiations on the bill, extending the timeline for approval. Investors broadly think a new dose of stimulus is necessary to gird the economy until the end of winter and widespread vaccinations have the potential to bring the virus under control in 2021. Rising cases appear to have hit consumer sentiment, weighing on retail sales. There are also new business restrictions in some states. “The stimulus is key,” said Mary Nicola, a portfolio manager at PineBridge Investments. Labor-market data on Thursday added to evidence that the economy has hit a speed bump. Initial claims for unemployment benefits rose by 23,000 to 885,000 in the week ended Dec. 12. Economists had been expecting a small decline. “Any stimulus is good stimulus at this point, especially when you’re coming through a rough patch,” Ms. Nicola added. “This will provide a bit more of a boost to the recovery.” Volunteers load cars with turkeys and other food assistance for laid off workers in Orlando on Saturday. Photo: Paul Hennessy/Zuma Press On Thursday, nine of the 11 major S&P 500 sectors notched gains. Communication and energy stocks traded in the red most of the session. Shares of several companies notched bigger gains after reporting upbeat quarterly results. Lennar added 5.8% after the home builder said first-quarter home deliveries and orders would be stronger than analysts expected. Shares of Rite Aid jumped 12% after the pharmacy chain topped analysts’ expectations, and Accenture rose 8.1% after the consulting firm also exceeded Wall Street’s projections. International markets advanced Thursday. The regionwide Stoxx Europe 600 gained 0.3%, led by shares in economically sensitive commodity producers and retailers alongside media companies. China’s Shanghai Composite Index ended 1.1% higher. Japan’s Nikkei 225 ticked up 0.2%. In bonds, the yield on 10-year Treasury notes edged up to 0.933% from 0.920% Wednesday. The dollar extended its recent slide. The WSJ Dollar Index fell 0.4%, after dropping to its lowest level since April 2018 on Wednesday. That decline came after the Federal Reserve said $120 billion a month in asset purchases will continue until substantial progress has been made toward its employment and inflation goals. The updated guidance underscores that the central bank will remain supportive of financial markets for some time to come, analysts and investors said. Lawmakers working to pass a coronavirus-aid bill face two sticking points: aid for state and local governments and liability protections. WSJ’s Gerald F. Seib explains why these issues matter and what a compromise might look like. Photo: Drew Angerer/Getty Images (Originally Published December 9, 2020) Recent Market Moves —Michael Wursthorn contributed to this article. Write to Joe Wallace at Joe.Wallace@wsj.com and Michael Wursthorn at Michael.Wursthorn@wsj.com Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8