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 immediate payments to Americans, instead of $600.
All 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 five 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, the moderate and longer term view for stocks will be good, Essaye included.
Apple led the Dow higher, rising 2.5 %. Tech & materials had been the best performing sectors in the S&P 500, gaining 0.9 % and 0.8 %, respectively.
Wall Street is actually coming off a quiet holiday week in which the key averages had been flat. The S&P 500 fell 0.2 % last week as several investors procured the chips off to the year-end. The 30 stock Dow eked out a 0.1 % gain for the same period.
Profit-taking might possibly ramp up in the final week of the season, which has thus far seen surprisingly strong 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 season as investors favored high-growth technology names while in the continuing Covid-19 pandemic.
Dr. Anthony Fauci warned on Sunday that the nation might see a surge in new Covid 19 infections following Christmas along with New Year’s celebrations. Two vaccines by Pfizer and Moderna have started the distribution process this month. And so much over one million folks in the U.S. are vaccinated.