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 direct payments to Americans, rather than $600.
All the bluster neither substantially changed to outlook for stocks, as markets still expected (and ultimately received) stimulus of a minimum of $900 billion to pass, wrote Tom Essaye, founding father 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 medium and longer-term perspective for stocks will be positive, Essaye included.
Apple led the Dow higher, rising 2.5 %. Tech & 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 peaceful holiday week wherein the major averages were flat. The S&P 500 fell 0.2 % last week as some 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 might ramp up in the final week of the year, which has thus far seen surprisingly good 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 year as investors favored high growth technology names while in the ongoing Covid 19 pandemic.
Dr. Anthony Fauci warned on Sunday that the united states can see a surge in new Covid 19 infections following Christmas along with New Year’s celebrations. Two vaccines by Moderna and Pfizer have started the distribution process this month. So far over one million men and women in the U.S. have been vaccinated.