Marley Jay

Associated Press

Stocks rallied Wednesday and continued their record-setting run as the Dow soared almost 300 points and leaped to another new record closing high. The rally was broad-based as the S&P 500, Dow transports and Russell 2000 also set new record closes.

The Dow Jones industrial average jumped 297.84 points, or 1.6%, to an all-time closing high of 19,549.62. The Standard & Poor’s 500 index jumped 1.3% to a record close of 2241.35. The small-stock Russell 2000 index gained 0.9% to an all-time high of 1364.51.

The tech-heavy Nasdaq composite index rose 1.1% to 5393.76, about 5 points shy of its record close.

Yes Virginia, Santa does bring that year-end rally on his sleigh

Stocks moved steadily higher throughout the day after a mixed open. Phone and real estate companies made the largest gains, but the rally moved into high gear in the afternoon, as airlines, railroads and trucking companies soared.

Investors took the rally in transportation stocks as a sign of optimism about economic growth. Technology and consumer-focused companies also jumped. Biotech drug companies took steep losses after President-elect Donald Trump said he wants to reduce drug prices.

The transportation sector reached an all-time high for the first time in two years. Julian Emanuel, an equity strategist for UBS, said investors were pleased to see that record because they see it as a sign businesses will start spending more, which would bolster economic growth.

“The consumer has really been the engine of the economy,” he said. “The missing piece has been the corporate side, the industrial side.”

U.S. government bond prices rose, sending yields lower. The yield on the 10-year Treasury note fell to 2.34% from 2.39%. Bond yields have risen sharply since the summer but have slipped in the last few days.

Oil prices fell back below $50 a barrel as benchmark U.S. crude dropped 2.3% to $49.77 a barrel in New York.

Missing out on the rally: Health care stocks.

Health care companies took steep losses after President-elect Donald Trump said he wants to reduce drug prices.

In an interview with Time Magazine, which named him Person of the Year, the president-elect said he wants to lower drug prices but did not say how his administration plans to do that. Democratic nominee Hillary Clinton campaigned on reducing drug prices, and drug company stocks had rallied since the election as investors felt that was less likely to happen under Trump.

The Nasdaq biotechnology index tumbled 2.9, as those companies make costly medications and might stand to lose the most under tighter price regulations. Amgen (AMGN) lost 2.7% and Vertex Pharmaceuticals (VRTX) sank 3.6%. Elsewhere, Pfizer (PFE) gave up 1.2% and drug distributor McKesson (MCK) sank 2.6%.

Global markets were higher amid optimism about the telecommunications industry and as investors expect more central bank stimulus in the eurozone.

Shares in technology investor SoftBank jumped 6.2% in Tokyo after its CEO met with U.S. President-elect Donald Trump and announced that the Japanese company, which owns the majority of Sprint, plans to invest $50 billion in the U.S. to create 50,000 jobs. Sprint (S) jumped almost 9% in New York and T-Mobile (TMUS) gained 4.3%, amid speculation T-Mobile it could be acquired, possibly by SoftBank.

Trump: SoftBank to add $50B, 50K jobs in U.S.

Investors are also preparing for the European Central Bank to expand its bond-buying stimulus program on Thursday. The central bank is expected to extend the duration beyond the current end-date of March. The program aims to push up growth and inflation, buoying stock markets.

France’s CAC 40 added 1.4% while Germany’s DAX was up 2%. Britain’s FTSE 100 rose 1.8%.

Japan’s benchmark Nikkei 225 rose 0.7% to finish at 18,496.69. Australia’s S&P/ASX 200 added 0.9% to 5,478.10. South Korea’s Kospi was little changed, inching up 0.1% to 1,991.89. Hong Kong’s Hang Seng gained 0.5% to 22,800.92, while the Shanghai Composite added 0.7% to 3,222.24.