The Standard & Poor's 500 index closed within two points of its all-time high after another strong report on housing encouraged investors to buy stocks.
Stocks are dropping sharply as investors worry that Italy could be seized with political paralysis, stymieing the country's economic reforms and causing another flare-up in the region's debt crisis.
Google's stock price topped $800 for the first time Tuesday amid renewed confidence in the company's ability to reap steadily higher profits from its dominance of Internet search and prominence in the increasingly important mobile device market.