Dow rises greater than 200 points, hits record very high as Wall Street kicks off last week of 2020

 Stocks traded higher on Monday ahead of the final trading week of 2020 and as President Donald Trump unexpectedly signed an economic relief bill.

The Dow Jones Industrial Average jumped 207 points, or maybe 0.7 %. The S&P 500 climbed 0.7 %, and the Nasdaq Composite rose 0.6 %. All 3 major indexes hit record highs at the open.

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, instead of $600.

Most of the bluster neither drastically 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 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 as well as supplies were the best performing sectors in the S&P 500, gaining 0.9 % and 0.8 %, respectively.

Wall Street is coming off a quiet holiday week wherein the main 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 very same period.

Profit-taking could ramp up in the last week of the year, which has so far seen astonishingly 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 labels while in the continuing Covid-19 pandemic.

Dr. Anthony Fauci warned on Sunday that the nation can see a surge in new Covid-19 infections following Christmas along with New Year’s celebrations. 2 vaccines by Pfizer and Moderna have begun the distribution process this month. So much over one million people in the U.S. are vaccinated.