Stocks notched broad gains on Wall Street Tuesday as renewed optimism that Washington will deliver more aid to the struggling economy put investors in a buying mood.

The S&P 500 climbed 1.3%, snapping a four-day losing streak. Technology companies powered much of the rally, which helped push the tech-heavy Nasdaq composite to an all-time high. An index of small-company stocks also set a record high. Treasury yields rose.

Negotiations between Democrats and Republicans on another round of coronavirus relief have been dragging on for weeks. Fresh signs of cooperation Tuesday appeared to boost the market’s confidence that Washington can hammer out a deal. A bipartisan group of lawmakers unveiled a detailed proposal.

“The most important thing is this idea of a fiscal stimulus package actually seeing some positive chance of being approved,” said Tom Martin, senior portfolio manager with Globalt Investments.

Also helping to steady the market were hopes for an improving economy next year as COVID-19 vaccines become widely distributed.