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 direct 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, the moderate and longer term outlook for stocks will be good, Essaye added.
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 % as well as 0.8 %, respectively.
Wall Street is coming off a quiet holiday week wherein the main averages were flat. The S&P 500 fell 0.2 % last week as some investors got the chips off into the year end. The 30 stock Dow eked out a 0.1 % gain for the very same period.
Profit-taking could ramp up in the final week of the year, which has up to this point seen astonishingly good returns. The S&P 500 has acquired 15.4 % year to date, while the Dow has climbed 6.4 %. The Nasdaq has soared 43.2 % this year as investors favored high-growth technology labels while in the continued Covid-19 pandemic.
Dr. Anthony Fauci warned on Sunday that the united states can see a surge in new Covid-19 infections following Christmas and New Year’s celebrations. Two vaccines by Pfizer and Moderna have started the distribution process this month. And so far more than one million folks in the U.S. are vaccinated.