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 direct payments to Americans, instead of $600.
All of 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, 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 mainly in place, and until that changes, longer term perspective and the medium for stocks will be good, Essaye included.
Apple led the Dow higher, rising 2.5 %. Tech as well as materials had been the best-performing sectors in the S&P 500, gaining 0.9 % and 0.8 %, respectively.
Wall Street is coming off a peaceful holiday week in which the major averages had been level. 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 same period.
Profit-taking could ramp up in the very last week of the season, which has so far seen surprisingly good returns. The S&P 500 has gotten 15.4 % year to date, while 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 might see a surge in new Covid 19 infections following Christmas and New Year’s celebrations. Two vaccines by Pfizer and Moderna have begun the distribution process this month. So far over one million folks in the U.S. are vaccinated.