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 direct payments to Americans, rather than $600.
All the bluster neither considerably 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 perspective and the moderate for stocks will be positive, Essaye added.
Apple led the Dow higher, rising 2.5 %. Tech and components had been the best-performing sectors in the S&P 500, gaining 0.9 % as well as 0.8 %, respectively.
Wall Street is coming off a peaceful holiday week where the key averages had been flat. The S&P 500 fell 0.2 % last week as several investors took 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, that has thus far seen surprisingly strong returns. The S&P 500 has gotten 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 continued Covid 19 pandemic.
Dr. Anthony Fauci warned on Sunday that the nation may 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. So far over one million folks in the U.S. are vaccinated.