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.
Most of the bluster neither significantly 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 medium for stocks will be good, Essaye added.
Apple led the Dow higher, rising 2.5 %. Tech as well as materials 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 in which the key averages had been flat. The S&P 500 fell 0.2 % last week as some investors took 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 astonishingly 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 during the continuing Covid 19 pandemic.
Dr. Anthony Fauci warned on Sunday that the nation can see a surge in new Covid-19 infections after Christmas and New Year’s celebrations. 2 vaccines by Pfizer and Moderna have started the distribution process this month. And so much over one million folks in the U.S. have been vaccinated.