U.S. stocks rallied to their best week since February, lifted by robust gains among shares of everything from banks to oil producers and manufacturers.
Markets raced higher from the get-go this week. Stocks jumped Monday, sending the Dow Jones Industrial Average to its biggest one-day climb since March. While the pace of gains slowed over the following days, stocks nevertheless kept mostly rising, allowing the S&P 500 to notch fresh closing highs both Thursday and Friday.
The moves mark a sharp reversal from just a week ago when the Dow suffered its worst stretch since October after the Federal Reserve signaled it would aim to raise interest rates sooner than previously anticipated.
Driving the bounce back, investors say, was data signaling a fresh acceleration in the world economy, as well as optimism over the prospect of additional fiscal stimulus. President Biden and a group of 10 centrist senators agreed to a roughly…