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 drastically changed to perspective 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 largely in place, and until that changes, longer term perspective and the medium for stocks will be good, Essaye included.
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 % and 0.8 %, respectively.
Wall Street is actually coming off a peaceful holiday week where the main averages had been level. 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 final week of the season, which has so far seen surprisingly strong returns. The S&P 500 has acquired 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 during the continued Covid-19 pandemic.
Dr. Anthony Fauci warned on Sunday that the united states may see a surge in new Covid-19 infections after Christmas and 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.