President Donald Trump signed a $900 billion Covid-19 relief bill into law, averting a government shutdown and extending unemployment benefits to millions of Americans. The signing came many days after Trump suggested he would veto the legislation, demanding $2,000 immediate payments to Americans, rather than $600.
Most of the bluster neither considerably changed to outlook for stocks, as markets still expected (and eventually received) stimulus of a minimum of $900 billion to pass, wrote Tom Essaye, founding father of The Sevens Report.
The 5 pillars of the rally (Federal stimulus, FOMC stimulus, vaccine rollout, divided government and no double dip recession) re main largely in place, and until that changes, longer-term perspective and the medium for stocks will be good, Essaye added.
Apple led the Dow higher, rising 2.5 %. Tech and components were the best-performing sectors in the S&P 500, gaining 0.9 % and 0.8 %, respectively.
Wall Street is coming off a quiet holiday week in which the major averages had been level. The S&P 500 fell 0.2 % last week as some investors procured the chips off into the year end. The 30-stock Dow eked out a 0.1 % gain for the very same period.
Profit-taking could ramp up in the final week of the year, that has thus far seen surprisingly good returns. The S&P 500 has gained 15.4 % year to date, while the Dow has climbed 6.4 %. The Nasdaq has soared 43.2 % this season as investors favored high growth technology labels during the ongoing Covid-19 pandemic.
Dr. Anthony Fauci warned on Sunday that the united states can see a surge in new Covid 19 infections following Christmas and New Year’s celebrations. Two vaccines by Pfizer and Moderna have begun the distribution process this month. And so much more than one million men and women in the U.S. are vaccinated.