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, instead of $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 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, the medium and longer-term perspective for stocks will be positive, Essaye included.
Apple led the Dow higher, rising 2.5 %. Tech & supplies had been the best performing sectors in the S&P 500, gaining 0.9 % and 0.8 %, respectively.
Wall Street is coming off a quiet holiday week in which the key averages had been 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 very same period.
Profit-taking might possibly ramp up in the very last week of the season, which has up to this point seen amazingly strong returns. The S&P 500 has gained 15.4 % year to date, while the Dow has climbed 6.4 %. The Nasdaq has soared 43.2 % this season as investors favored high-growth technology labels while in the ongoing Covid-19 pandemic.
Dr. Anthony Fauci warned on Sunday that the country might see a surge in new Covid-19 infections after Christmas along with New Year’s celebrations. 2 vaccines by Moderna and Pfizer have started the distribution process this month. And so much more than one million people in the U.S. are vaccinated.