By Jesse Cohen
Investing.com - Stocks on Wall Street rallied on Friday to wrap up another strong week of gains, with the Dow Jones Industrial Average erasing its losses of 2020 thanks to an ongoing flood of stimulus from the Federal Reserve.
The 30-stock Dow closed 161.60 points higher, or 0.6%, at 28,653.87. Friday’s gains put the index in positive territory for the year, up 0.4% for 2020.
The S&P 500 gained 0.7% to close at 3,508.01. It was the benchmark index’s first-ever close above 3,500.
The Nasdaq Composite meanwhile advanced 0.6% to end the day at 11,695.63, also a record close.
For the week, the Dow advanced 2.6% for its third weekly gain in four weeks. The S&P 500 and Nasdaq both notched five-week winning streaks, climbing around 3% each.
Stocks have rallied sharply in recent months, with all three benchmarks up more than 55% from their lows set on March 23 - when coronavirus-related lockdowns shocked the stock market - as a barrage of stimulus from the Fed and the U.S. government boosted risk appetite.
The Fed on Thursday unveiled a major policy shift, allowing inflation to run higher to continue to support the economy. The move indicates that interest rates are likely to stay at current level for a long period of time.
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