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 will veto the legislation, demanding $2,000 direct payments to Americans, rather than $600.
All the bluster neither significantly changed to perspective for stocks, as markets still expected (and ultimately 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 outlook and the moderate for stocks will be good, Essaye included.
Apple led the Dow higher, rising 2.5 %. Tech as well as materials 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 key averages were flat. The S&P 500 fell 0.2 % last week as several investors procured the chips off into the year end. The 30 stock Dow eked out a 0.1 % gain for the same period.
Profit-taking might possibly ramp up in the very last week of the year, which has so far seen surprisingly strong returns. The S&P 500 has acquired 15.4 % year to date, even though the Dow has climbed 6.4 %. The Nasdaq has soared 43.2 % this year as investors favored high-growth technology names during 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 begun the distribution process this month. And so much more than one million men and women in the U.S. are vaccinated.