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.