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 will veto the legislation, demanding $2,000 immediate payments to Americans, rather than $600.
All the bluster neither significantly changed to outlook for stocks, as markets still expected (and eventually received) stimulus of a minimum of $900 billion to pass, wrote Tom Essaye, founding father 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 mainly in place, and until that changes, the moderate and longer term perspective for stocks will be good, Essaye added.
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 quiet holiday week wherein the major averages had been flat. The S&P 500 fell 0.2 % last week as some investors procured the chips off to 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, that has up to this point seen amazingly strong returns. The S&P 500 has gained 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 while in the continuing Covid 19 pandemic.
Dr. Anthony Fauci warned on Sunday that the united states may see a surge in new Covid-19 infections following Christmas along with New Year’s celebrations. Two vaccines by Pfizer and Moderna have begun the distribution process this month. So much over one million individuals in the U.S. are vaccinated.