S&P and Nasdaq close on record gains amid hopes on new China stimulus

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The S&P 500 and Nasdaq closed at record highs on Wednesday amid expectations of a newly-issued stimulus from Beijing to soften the economic impact of the coronavirus. The spread of the virus had been reported to show signs of  slowdown in China.

The S&P 500 soared 0.47% while the Nasdaq Composite surged 0.87%. Meanwhile, the Dow Jones Industrial Average gained by 0.40%.

The gains poured after the Bank of China signaled at new stimulus to cushion the impact of the world's second largest economy from the virus. Many have speculated that the plans may be initiated as soon as Thursday.

"The fundamentals of China's economy have not changed," the People's Bank of China said. "China's economy, however, also faces several challenges but will fend off major financial risks."

The reports of easing virus fears also aided in the rallying of oil prices and chip stocks.

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