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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 unexpectedly signed an economic relief bill.

The Dow Jones Industrial Average jumped 207 points, or perhaps 0.7 %. The S&P 500 climbed 0.7 %, and the Nasdaq Composite rose 0.6 %. All three 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 would veto the legislation, demanding $2,000 direct payments to Americans, instead of $600.

All of the bluster neither drastically 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 largely in place, and until that changes, longer term view and the medium for stocks will be good, Essaye included.

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

Wall Street is coming off a quiet holiday week in which the key averages had been level. The S&P 500 fell 0.2 % last week as several investors took the chips off into 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 final week of the season, that has up to this point seen astonishingly good returns. The S&P 500 has gained 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 labels while in the continued Covid-19 pandemic.

Dr. Anthony Fauci warned on Sunday that the united states could see a surge in new Covid 19 infections after Christmas along with New Year’s celebrations. 2 vaccines by Moderna and Pfizer have started the distribution process this month. And so much over one million folks in the U.S. are vaccinated.

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