The S&P 500 briefly traded above its record closing high Wednesday, nearly erasing the last of the historic losses it took due to the coronavirus pandemic. The index ended up with a gain of 1.4%, just shy of its all-time high. Big technology stocks once again led way. At its depths, the S&P 500 had been down nearly 34% when worries about the recession were at their height. But massive aid from the Federal Reserve and Congress helped prop up the market. That’s allowed investors to look ahead a to a future when a vaccine will hopefully help the economy get back to normal.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story appears below.
Stocks marched broadly higher on Wall Street Wednesday, placing the S&P 500 within striking distance of its all-time high.

The benchmark index was up 1.6% in afternoon trading and on pace for its eighth gain in nine days. The index briefly inched above its previous record high set in February when the coronavirus seemed like only a far-away worry for Wall Street. It was within 0.2% of its record in the last half-hour of trading.

Big technology stocks once again were leading the way higher. The rally followed gains for stocks across Europe and much of Asia, while Treasury yields continued their sharp increase after a report on inflation came in higher than expected for the second straight day.

The Dow Jones Industrial Average was up 288 points, or 1%, at 27,976 as of 3:38 p.m. Eastern time, and the Nasdaq composite was up 2%. Indexes in Europe closed broadly higher. Asian markets were mixed.

The U.S. stock market is on the edge of erasing the last of the losses taken after the coronavirus pandemic crushed the economy into recession, even though the economy is still hobbling despite some recent improvements. In March, the S&P 500 had been down nearly 34% from its record.

Much of the rebound has been due to massive amounts of support from the Federal Reserve, which has slashed interest rates to nearly zero and propped up far-ranging corners of the bond market to keep the economy’s head above water. The ultra-low interest rates mean investors are getting paid very little to own bonds, which pushes some into stocks, boosting their prices.

Congress has also offered unprecedented amounts of aid, though it’s hit a seeming impasse in negotiations to re-up its assistance.

All that support has investors willing to look a few months or a year into the future, when a vaccine for the new coronavirus will hopefully be available and helping the economy get back to normal. More importantly for stock prices, the expectation is that corporate profits will also rebound from their current coronavirus-caused hole.

“Economic data is coming in much better than expected; the earnings season is much better than expected,” said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors. “You couple all of those things with the massive amounts of fiscal and monetary stimulus taking place. That’s why we’ve seen the (market) rally so quickly off its low and at the magnitude that we’ve seen.”

Wall Street’s gains on Wednesday were widespread, with two-thirds of the stocks in the S&P 500 higher.

Technology stocks were among the biggest forces prodding the market higher. It’s a return to form for them, following a mini-stumble in recent days.

Big tech-oriented giants like Apple, Microsoft and Amazon have been the year’s biggest winners, carrying the stock market through the pandemic despite the worries about the economy, on expectations they’ll continue to deliver strong growth regardless of whether people are quarantined.

Tesla jumped another 12% Wednesday after announcing a 5-for-1 split of its stock, in hopes of making the price of each share more affordable to investors. The stock has surged past $1,400 after starting the year a little below $420.

The yield on the 10-year Treasury rose to 0.67% from 0.66% late Tuesday.

It’s jumped sharply since sitting at 0.57% late Monday.

A report on Wednesday showed that inflation remains very low, but it ticked up more last month than economists expected. Economists debated how much value the report has, given that inflation is likely to remain weak with the pandemic flattening the economy.

If inflation were to reappear, it could weaken the Federal Reserve’s commitment to keeping interest rates low and could ultimately draw some investors away from stocks.

Other risks also continue to loom over the market, including worsening tensions between the United States and China, which are the world’s largest economies. Technology companies have been in focus in particular, and worries about potential retaliation by China were a big reason for U.S. tech stocks’ struggles earlier in the week.

Partisan rancor in Washington is also threatening the possibility of more assistance for the economy. A $600 weekly unemployment benefit from the U.S. government expired with July’s end, and investors say the economy needs another big lifeline from Washington. President Donald Trump signed several executive orders this past weekend to offer some assistance, but critics say they fall well short of what’s needed.

The recent rise in yields has also slowed the supersonic ascent for gold recently. The metal’s price has shot to record highs this year, benefiting from increased demand by investors looking for safety amid the pandemic but not interested in the low yields offered by bonds.

Gold for delivery in December slipped $2.70 to $1,949 per ounce a day after plunging by more than $90 per ounce.

Oil prices rose. Benchmark U.S. crude gained 2.5% to $42.67 per barrel.

Brent crude, the international standard, rose 2.1% to $45.43.