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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 front of the 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 perhaps 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.

All 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, founder 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 moderate and longer term outlook for stocks will be good, 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 quiet holiday week where the key averages had been level. The S&P 500 fell 0.2 % last week as several investors took 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 last week of the season, which has up to this point seen astonishingly good returns. The S&P 500 has gotten 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 continuing Covid 19 pandemic.

Dr. Anthony Fauci warned on Sunday that the nation can 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. And so far more than one million men and women in the U.S. are vaccinated.

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