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 direct payments to Americans, rather than $600.
Most of the bluster neither significantly changed to outlook for stocks, as markets still expected (and ultimately received) stimulus of a minimum of $900 billion to pass, wrote Tom Essaye, founder 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 mainly in place, and until that changes, longer term view and the medium for stocks will be good, Essaye added.
Apple led the Dow higher, rising 2.5 %. Tech & components were the best-performing sectors in the S&P 500, gaining 0.9 % along with 0.8 %, respectively.
Wall Street is actually coming off a peaceful holiday week wherein the major averages were flat. The S&P 500 fell 0.2 % last week as some investors procured 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 season, which has so 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 names while in the continuing Covid 19 pandemic.
Dr. Anthony Fauci warned on Sunday that the united states might see a surge in new Covid-19 infections after Christmas along with New Year’s celebrations. Two vaccines by Moderna and Pfizer have started the distribution process this month. And so much more than one million folks in the U.S. are vaccinated.