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Dow rises more than 200 points, hits record 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 help bill.

The Dow Jones Industrial Average jumped 207 points, or 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.

Most of the bluster neither substantially changed to perspective 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 view 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 % and 0.8 %, respectively.

Wall Street is coming off a peaceful holiday week in which the main averages had been flat. The S&P 500 fell 0.2 % last week as some investors procured the chips off to the year-end. The 30 stock Dow eked out a 0.1 % gain for the very same period.

Profit-taking might ramp up in the last week of the year, which has thus far seen amazingly good returns. The S&P 500 has gained 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 names while in the continuing Covid 19 pandemic.

Dr. Anthony Fauci warned on Sunday that the united states could 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 over one million folks in the U.S. have been vaccinated.

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