Share prices in New York rallied on Wednesday, lifting two of the major US indexes to record highs. Investors piled into stocks on bets a Democratic win in Georgia will lead to more fiscal stimulus and infrastructure spending.
The benchmark Dow Jones Industrial Average ended at 30,829. That was up 437 points, or 1.4 percent, from the previous day's close.
Late results from Tuesday's runoff elections in Georgia showed that Democrats would have control of the US Senate.
Investors now believe the Biden administration will have an easier time implementing new spending programs to give a boost to the pandemic-hit economy.
In the bond market, the yield on the 10-year Treasury note rose to the 1-percent level for the first time in about 10 months.
Investors hold the view that large-scale fiscal stimulus will prompt the government to issue more bonds, thereby increasing their supply and lowering their prices.