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 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, 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 largely in place, and until that changes, longer-term view and the moderate for stocks will be positive, Essaye included.
Apple led the Dow higher, rising 2.5 %. Tech as well as components were 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 peaceful holiday week in which the major averages were 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 same period.
Profit-taking could ramp up in the final week of the year, that has up to this point seen surprisingly 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 during the continuing Covid 19 pandemic.
Dr. Anthony Fauci warned on Sunday that the united states could 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. And so far over one million individuals in the U.S. are vaccinated.