US stock markets moved closer to record highs on Tuesday after investors bet on a fresh round of government spending to lift the economy and counter the effects of the Covid-19 pandemic.

The S&P 500, seen as the broadest measure of US investor sentiment, raced to a 10-point gain by mid afternoon to leave it just 16 points short of the all-time high reached in February.

In a further boost to the market, it was reported that the short-term home rental company Airbnb was close to filing paperwork for an initial public offering with the US Securities and Exchange Commission.

The move, which could value the company at $35bn (£27bn), may show the firm defying concerns at the prospects for travel and home rentals during the pandemic and list in New York before the end of the year, according to the Wall Street Journal.

Recording its eighth day of consecutive gains, the S&P 500 was up 0.4% in morning trading, following an announcement by Donald Trump that he was considering cutting taxes on capital gains and income.