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 ahead of the last trading week of 2020 and as President Donald Trump suddenly signed an economic help 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 days after Trump suggested he would veto the legislation, demanding $2,000 immediate payments to Americans, instead of $600.

Most of the bluster neither considerably 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 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 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 actually coming off a peaceful holiday week wherein the major averages had been flat. 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 could ramp up in the last week of the year, that has up to this point seen surprisingly good 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 year as investors favored high growth technology names while in the ongoing Covid-19 pandemic.

Dr. Anthony Fauci warned on Sunday that the united states could see a surge in new Covid 19 infections following 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 people in the U.S. are vaccinated.

Leave a Reply

Your email address will not be published.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