Categories
Market

Dow rises more than 200 points, hits record high as Wall Street kicks off last week of 2020

 Stocks traded higher on Monday in advance of the last trading week of 2020 and as President Donald Trump unexpectedly signed an economic comfort bill.

The Dow Jones Industrial Average jumped 207 points, or maybe 0.7 %. The S&P 500 climbed 0.7 %, and the Nasdaq Composite rose 0.6 %. All 3 major indexes hit record highs at the open.

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 significantly 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 5 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 outlook and the moderate for stocks will be good, Essaye added.

Apple led the Dow higher, rising 2.5 %. Tech & supplies were the best performing sectors in the S&P 500, gaining 0.9 % along with 0.8 %, respectively.

Wall Street is actually coming off a peaceful holiday week wherein the main averages had been level. The S&P 500 fell 0.2 % last week as several 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 possibly ramp up in the final week of the year, which has so far seen astonishingly strong returns. The S&P 500 has gotten 15.4 % year to date, while the Dow has climbed 6.4 %. The Nasdaq has soared 43.2 % this season as investors favored high growth technology labels during the continuing Covid-19 pandemic.

Dr. Anthony Fauci warned on Sunday that the country can see a surge in new Covid 19 infections following Christmas along with New Year’s celebrations. 2 vaccines by Pfizer and Moderna have begun the distribution process this month. So much more than one million people in the U.S. are vaccinated.

Leave a Reply

Your email address will not be published. Required fields are marked *