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 immediate payments to Americans, instead of $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, 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 mainly in place, and until that changes, longer-term outlook and the medium for stocks will be positive, Essaye added.
Apple led the Dow higher, rising 2.5 %. Tech and supplies had been the best performing sectors in the S&P 500, gaining 0.9 % and 0.8 %, respectively.
Wall Street is actually coming off a peaceful holiday week where the main averages had been 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 ramp up in the last week of the year, which has so far seen surprisingly good 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 names while in the ongoing Covid 19 pandemic.
Dr. Anthony Fauci warned on Sunday that the united states might see a surge in new Covid 19 infections after Christmas and New Year’s celebrations. Two vaccines by Moderna and Pfizer have started the distribution process this month. And so much over one million folks in the U.S. have been vaccinated.