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.