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 would veto the legislation, demanding $2,000 direct payments to Americans, rather than $600.
All of 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, 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 perspective and the moderate for stocks will be good, Essaye included.
Apple led the Dow higher, rising 2.5 %. Tech as well as components had been the best performing sectors in the S&P 500, gaining 0.9 % along with 0.8 %, respectively.
Wall Street is coming off a peaceful holiday week wherein 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 very same period.
Profit-taking might ramp up in the last week of the season, which has thus far seen astonishingly strong 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 season as investors favored high-growth technology labels while in the continued Covid 19 pandemic.
Dr. Anthony Fauci warned on Sunday that the nation may see a surge in new Covid-19 infections following Christmas and New Year’s celebrations. 2 vaccines by Moderna and Pfizer have begun the distribution process this month. And so much over one million individuals in the U.S. have been vaccinated.