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

 Stocks traded higher on Monday in advance of the very 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 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 direct payments to Americans, rather than $600.

All of 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, the moderate and longer-term outlook for stocks will be positive, Essaye included.

Apple led the Dow higher, rising 2.5 %. Tech and materials had been the best-performing sectors in the S&P 500, gaining 0.9 % as well as 0.8 %, respectively.

Wall Street is coming off a peaceful holiday week where the major averages were flat. The S&P 500 fell 0.2 % last week as some investors got the chips off into 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 very last week of the season, that has up to this point seen surprisingly strong returns. The S&P 500 has acquired 15.4 % year to date, although the Dow has climbed 6.4 %. The Nasdaq has soared 43.2 % this year as investors favored high growth technology names during the continued Covid 19 pandemic.

Dr. Anthony Fauci warned on Sunday that the united states might see a surge in new Covid-19 infections after Christmas and New Year’s celebrations. 2 vaccines by Moderna and Pfizer have started the distribution process this month. So far over one million people in the U.S. are vaccinated.

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