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

 Stocks traded higher on Monday in front of the very last trading week of 2020 and as President Donald Trump unexpectedly 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 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 days after Trump suggested he will veto the legislation, demanding $2,000 immediate payments to Americans, rather than $600.

Most of the bluster neither significantly 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 mainly in place, and until that changes, the medium and longer term perspective for stocks will be positive, Essaye added.

Apple led the Dow higher, rising 2.5 %. Tech & 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 in which the main averages were flat. 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 very last week of the year, which has thus far seen astonishingly 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 season as investors favored high growth technology labels while in the continuing Covid 19 pandemic.

Dr. Anthony Fauci warned on Sunday that the country may see a surge in new Covid 19 infections following Christmas along with New Year’s celebrations. 2 vaccines by Pfizer and Moderna have started the distribution process this month. And so far more than one million people in the U.S. have been vaccinated.

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