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Dow rises more than 200 points, hits record very high as Wall Street kicks off last week of 2020

 Stocks traded higher on Monday ahead of the very last trading week of 2020 and as President Donald Trump suddenly signed an economic relief bill.

The Dow Jones Industrial Average jumped 207 points, or maybe 0.7 %. The S&P 500 climbed 0.7 %, and the Nasdaq Composite rose 0.6 %. All 3 major indexes hit record highs at the open.

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 of the bluster neither substantially changed to perspective 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 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 view and the medium for stocks will be good, Essaye included.

Apple led the Dow higher, rising 2.5 %. Tech as well as components were the best-performing sectors in the S&P 500, gaining 0.9 % along with 0.8 %, respectively.

Wall Street is actually coming off a quiet holiday week where the major averages were level. The S&P 500 fell 0.2 % last week as some investors took the chips off into the year-end. The 30-stock Dow eked out a 0.1 % gain for the same period.

Profit-taking might ramp up in the final week of the season, which has up to this point seen astonishingly good returns. The S&P 500 has gotten 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 continuing Covid 19 pandemic.

Dr. Anthony Fauci warned on Sunday that the country may see a surge in new Covid-19 infections following Christmas along with New Year’s celebrations. 2 vaccines by Pfizer and Moderna have started the distribution process this month. So far more than one million individuals in the U.S. are vaccinated.

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