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

 Stocks traded higher on Monday ahead of the very last trading week of 2020 and as President Donald Trump suddenly 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 would veto the legislation, demanding $2,000 immediate payments to Americans, rather than $600.

Most of the bluster neither significantly changed to perspective for stocks, as markets still expected (and ultimately received) stimulus of a minimum of $900 billion to pass, wrote Tom Essaye, founder 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 positive, Essaye added.

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 in which the main averages were level. 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 same period.

Profit-taking might possibly ramp up in the final week of the year, which has so far seen astonishingly good returns. The S&P 500 has gained 15.4 % year to date, although the Dow has climbed 6.4 %. The Nasdaq has soared 43.2 % this season as investors favored high growth technology labels while in the continuing Covid 19 pandemic.

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

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