Stocks finished with gains, but off session highs and with weekly losses for major benchmarks, bouncing a day after reports that President Joe Biden plans to nearly double the capital-gains tax rate for Americans earning more than $1 million a year. The Dow Jones Industrial Average finished around 228 points higher, up 0.7%, near 34,043.82, according to preliminary figures, after rising more than 300 points at its session high. The S&P 500 closed 1.1% higher near 4,180, after trading above its April 16 closing high at 4,185.47 during the session. The Nasdaq Composite advanced around 198 points, or 1.4%, to close near 14,017. Stocks were lifted after IHS Markit purchasing managers index readings for the manufacturing and services sectors hit records and data showed home sales continued at a rapid pace. Investors also played down worries over a rise in the capital-gains tax rate, noting that past rises have been shown to have little correlation with equity returns. The benchmarks lost ground for the week, however, with the S&P 500 off 0.1%, the Dow down 0.5% and the Nasdaq off 0.3%.

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