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 would veto the legislation, demanding $2,000 direct payments to Americans, rather than $600.
All the bluster neither considerably changed to perspective for stocks, as markets still expected (and eventually 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 moderate for stocks will be positive, Essaye added.
Apple led the Dow higher, rising 2.5 %. Tech & supplies were 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 where the key averages were level. The S&P 500 fell 0.2 % last week as some 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 possibly ramp up in the very last week of the season, that has so far seen amazingly 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 season as investors favored high growth technology labels during the ongoing Covid-19 pandemic.
Dr. Anthony Fauci warned on Sunday that the country could see a surge in new Covid 19 infections after Christmas and New Year’s celebrations. Two vaccines by Pfizer and Moderna have started the distribution process this month. So much more than one million people in the U.S. are vaccinated.