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 medium and longer-term perspective for stocks will be positive, Essaye included.
Apple led the Dow higher, rising 2.5 %. Tech and materials were the best performing sectors in the S&P 500, gaining 0.9 % along with 0.8 %, respectively.
Wall Street is coming off a quiet holiday week in which the major averages were 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 very same period.
Profit-taking might possibly ramp up in the very last week of the season, which has so far seen astonishingly good returns. The S&P 500 has gained 15.4 % year to date, although the Dow has climbed 6.4 %. The Nasdaq has soared 43.2 % this year as investors favored high growth technology names during the continued Covid 19 pandemic.
Dr. Anthony Fauci warned on Sunday that the united states could see a surge in new Covid-19 infections after Christmas along with New Year’s celebrations. Two vaccines by Moderna and Pfizer have begun the distribution process this month. And so far more than one million men and women in the U.S. are vaccinated.