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 days after Trump suggested he would veto the legislation, demanding $2,000 immediate payments to Americans, instead of $600.
All the bluster neither substantially changed to perspective 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 five 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 view and the moderate for stocks will be positive, Essaye added.
Apple led the Dow higher, rising 2.5 %. Tech & materials had been the best performing sectors in the S&P 500, gaining 0.9 % along with 0.8 %, respectively.
Wall Street is coming off a peaceful holiday week wherein the key averages were flat. The S&P 500 fell 0.2 % last week as several investors got the chips off to the year end. The 30 stock Dow eked out a 0.1 % gain for the very same period.
Profit-taking might possibly ramp up in the final week of the year, that has thus far seen amazingly strong 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 nation may see a surge in new Covid-19 infections following Christmas and New Year’s celebrations. 2 vaccines by Moderna and Pfizer have begun the distribution process this month. So far more than one million individuals in the U.S. have been vaccinated.