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, rather than $600.
All of the bluster neither drastically 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 5 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, longer-term perspective and the moderate for stocks will be positive, Essaye included.
Apple led the Dow higher, rising 2.5 %. Tech and materials were the best performing sectors in the S&P 500, gaining 0.9 % as well as 0.8 %, respectively.
Wall Street is actually coming off a quiet holiday week in which 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 possibly ramp up in the last week of the season, which has so far seen amazingly good returns. The S&P 500 has acquired 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 names during the continuing Covid 19 pandemic.
Dr. Anthony Fauci warned on Sunday that the country can see a surge in new Covid 19 infections after Christmas along with New Year’s celebrations. Two vaccines by Pfizer and Moderna have begun the distribution process this month. And so much more than one million folks in the U.S. have been vaccinated.