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 will veto the legislation, demanding $2,000 immediate payments to Americans, rather than $600.
All of 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 positive, Essaye added.
Apple led the Dow higher, rising 2.5 %. Tech and supplies had been the best-performing sectors in the S&P 500, gaining 0.9 % as well as 0.8 %, respectively.
Wall Street is actually coming off a quiet holiday week where the key averages had been flat. The S&P 500 fell 0.2 % last week as several investors procured the chips off into the year-end. The 30-stock Dow eked out a 0.1 % gain for the very same period.
Profit-taking might ramp up in the final week of the year, which has thus far seen amazingly strong returns. The S&P 500 has acquired 15.4 % year to date, while the Dow has climbed 6.4 %. The Nasdaq has soared 43.2 % this season as investors favored high-growth technology labels during the ongoing Covid-19 pandemic.
Dr. Anthony Fauci warned on Sunday that the nation might see a surge in new Covid 19 infections after Christmas along with New Year’s celebrations. 2 vaccines by Pfizer and Moderna have begun the distribution process this month. So far more than one million people in the U.S. are vaccinated.