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 will veto the legislation, demanding $2,000 immediate payments to Americans, instead of $600.
All 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 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 outlook and the medium for stocks will be positive, Essaye included.
Apple led the Dow higher, rising 2.5 %. Tech and components 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 where the key averages had been level. 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 very same period.
Profit-taking might ramp up in the very last week of the year, that has up to this point seen amazingly good returns. The S&P 500 has gotten 15.4 % year to date, even though the Dow has climbed 6.4 %. The Nasdaq has soared 43.2 % this year as investors favored high growth technology names while in the continued Covid 19 pandemic.
Dr. Anthony Fauci warned on Sunday that the nation can see a surge in new Covid 19 infections following Christmas and New Year’s celebrations. Two vaccines by Pfizer and Moderna have begun the distribution process this month. So much more than one million folks in the U.S. are vaccinated.