Dow Ends At Record As Congress Approves Huge Economic Relief Bill

European and US equities mostly rose Wednesday, striking records on both sides of the Atlantic, as US inflation remained muted and the massive $1.9-trillion stimulus program cleared the last hurdle in Congress.

The Dow powered to a fresh record as the House of Representatives finally approved President Joe Biden's enormous economic relief package on a party-line vote, pumping billions of dollars into US households and unemployed workers and providing support for efforts to alleviate child poverty.

"This legislation is about giving the backbone of this nation -- the essential workers, the working people who built this country, the people who keep this country going -- a fighting chance," the president said in a post-vote statement.

In Europe, Frankfurt's DAX also set records for a third day in a row, closing above 14,500 for the first time. Paris set a one-year high, nearing the record it set just before the pandemic, but London dipped.

Prospects for the big US package have boosted investor sentiment, along with increased momentum for coronavirus vaccinations.

However, this year's global equities rally recently hit an air pocket over fears over the prospect of soaring inflation and rising interest rates.

Rising energy prices drove US consumer inflation up 0.4 percent in February, but "core" inflation excluding food and energy edged up just 0.1 percent from January, according to US data.

Briefing.com analyst Pat O'Hare said the data -- which was roughly in line with expectations -- "placated" investors who have been rattled by higher US Treasury yields in recent weeks.

Fears that inflation would force the Federal Reserve to begin winding back ultra-loose monetary policies -- including record low interest rates -- that have been a key driver of the year-long stocks rally, saw investors sell off equities last week.

"Wednesday's data does suggest that, for now at least, the fears over inflationary pressures have been overstated," said market analyst Connor Campbell at Spreadex.

Among individual companies, General Electric dropped 5.4 percent after announcing it will sell its aircraft leasing business to AerCap for $30 billion. AerCap fell 4.7 percent.

New York - Dow: UP 1.5 percent at 32,297.02 (close)

New York - S&P 500: UP 0.6 percent at 3,898.81 (close)