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 drastically changed to perspective for stocks, as markets still expected (and eventually 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 largely in place, and until that changes, longer term view and the moderate for stocks will be positive, Essaye included.
Apple led the Dow higher, rising 2.5 %. Tech and materials had been the best performing sectors in the S&P 500, gaining 0.9 % along with 0.8 %, respectively.
Wall Street is actually coming off a quiet holiday week where the main 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 very same period.
Profit-taking could ramp up in the final week of the year, which has so far seen surprisingly strong returns. The S&P 500 has acquired 15.4 % year to date, while the Dow has climbed 6.4 %. The Nasdaq has soared 43.2 % this year as investors favored high-growth technology labels during the ongoing Covid 19 pandemic.
Dr. Anthony Fauci warned on Sunday that the united states could see a surge in new Covid-19 infections after Christmas along with New Year’s celebrations. Two vaccines by Pfizer and Moderna have started the distribution process this month. So much more than one million men and women in the U.S. have been vaccinated.