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 would veto the legislation, demanding $2,000 immediate payments to Americans, instead of $600.
All the bluster neither drastically 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, longer-term view and the medium for stocks will be positive, Essaye included.
Apple led the Dow higher, rising 2.5 %. Tech & components were the best-performing sectors in the S&P 500, gaining 0.9 % as well as 0.8 %, respectively.
Wall Street is coming off a peaceful holiday week in which the major averages had been flat. The S&P 500 fell 0.2 % last week as some investors got the chips off to the year end. The 30-stock Dow eked out a 0.1 % gain for the same period.
Profit-taking might ramp up in the very last week of the season, that has up to this point seen astonishingly good returns. The S&P 500 has acquired 15.4 % year to date, although the Dow has climbed 6.4 %. The Nasdaq has soared 43.2 % this season as investors favored high-growth technology labels during the continued Covid-19 pandemic.
Dr. Anthony Fauci warned on Sunday that the country may see a surge in new Covid 19 infections after Christmas along with New Year’s celebrations. 2 vaccines by Pfizer and Moderna have started the distribution process this month. So much over one million folks in the U.S. are vaccinated.