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 immediate payments to Americans, instead of $600.
Most of the bluster neither significantly 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 5 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, the moderate and longer term view for stocks will be positive, Essaye included.
Apple led the Dow higher, rising 2.5 %. Tech and materials had been the best-performing sectors in the S&P 500, gaining 0.9 % along with 0.8 %, respectively.
Wall Street is coming off a peaceful holiday week where the major averages were flat. The S&P 500 fell 0.2 % last week as several investors took the chips off to the year-end. The 30-stock Dow eked out a 0.1 % gain for the very same period.
Profit-taking might possibly ramp up in the final week of the season, that has thus far seen surprisingly good 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 labels while in the continued Covid 19 pandemic.
Dr. Anthony Fauci warned on Sunday that the nation may see a surge in new Covid 19 infections after Christmas and New Year’s celebrations. 2 vaccines by Pfizer and Moderna have started the distribution process this month. And so much more than one million people in the U.S. have been vaccinated.