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 would veto the legislation, demanding $2,000 direct payments to Americans, rather than $600.
All of the bluster neither substantially changed to perspective for stocks, as markets still expected (and eventually 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 moderate for stocks will be positive, 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 % and 0.8 %, respectively.
Wall Street is actually coming off a peaceful holiday week wherein the main averages were flat. The S&P 500 fell 0.2 % last week as several investors got 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 last week of the year, which has so far seen surprisingly good 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 season as investors favored high-growth technology names while in the ongoing Covid 19 pandemic.
Dr. Anthony Fauci warned on Sunday that the united states can see a surge in new Covid 19 infections after Christmas along with New Year’s celebrations. 2 vaccines by Moderna and Pfizer have started the distribution process this month. So far over one million men and women in the U.S. have been vaccinated.