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Dow hits 27,000, extending market rally

Dow hits 27,000, extending market rally
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The Dow Jones Industrial Average on Wednesday closed above 27,000, extending a market rally and returning the index to a level it first hit a year ago and last touched in early June.

The Dow closed at 27,006, up 165 points, or 0.6 percent, while the S&P 500 closed up 18.7 points, or 0.6 percent.

The figure puts the Dow within striking distance of erasing its losses for the year, though it still remains below its February high point of more than 29,500.

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After a major crash in March, markets have proved remarkably resilient in the face of the COVID-19 pandemic, which has led to the highest unemployment rate since World War II. 

Some market watchers believe that broad interventions from the Federal Reserve are overinflating markets and that high valuations are potentially setting up another crash.

Meanwhile, the prospects that Congress will agree to a new COVID-19 relief package before benefits such as expanded unemployment expire next week appear to have gotten slimmer, as Republicans struggle to find a unified position and Democrats demand broader, more dramatic interventions to prop up the economy.