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 will veto the legislation, demanding $2,000 direct payments to Americans, instead of $600.
All 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 five 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 & materials were the best-performing sectors in the S&P 500, gaining 0.9 % as well as 0.8 %, respectively.
Wall Street is actually coming off a peaceful holiday week in which the key averages had been level. 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 ramp up in the very last week of the season, that has up to this point seen astonishingly good returns. The S&P 500 has gotten 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 continuing Covid-19 pandemic.
Dr. Anthony Fauci warned on Sunday that the united states may 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 far more than one million folks in the U.S. are vaccinated.