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

 Stocks traded higher on Monday ahead of the final trading week of 2020 and as President Donald Trump unexpectedly signed an economic relief 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 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 will veto the legislation, demanding $2,000 immediate payments to Americans, rather than $600.

All of the bluster neither substantially changed to outlook for stocks, as markets still expected (and ultimately 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, the medium and longer-term outlook for stocks will be positive, Essaye added.

Apple led the Dow higher, rising 2.5 %. Tech and components had been 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 key averages had been level. The S&P 500 fell 0.2 % last week as some investors got the chips off to the year-end. The 30 stock Dow eked out a 0.1 % gain for the same period.

Profit-taking might possibly ramp up in the final week of the year, which has up to this point seen surprisingly good returns. The S&P 500 has acquired 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 continuing Covid 19 pandemic.

Dr. Anthony Fauci warned on Sunday that the united states may see a surge in new Covid 19 infections after Christmas and New Year’s celebrations. 2 vaccines by Moderna and Pfizer have begun the distribution process this month. And so far over one million men and women in the U.S. have been vaccinated.

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