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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 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 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 would veto the legislation, demanding $2,000 immediate payments to Americans, rather than $600.

All the bluster neither considerably 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 largely in place, and until that changes, longer term perspective and the medium for stocks will be good, Essaye added.

Apple led the Dow higher, rising 2.5 %. Tech as well as supplies 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 level. The S&P 500 fell 0.2 % last week as several 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 ramp up in the final week of the year, that 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 year as investors favored high-growth technology labels during the ongoing 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 Pfizer and Moderna have started the distribution process this month. So far more than one million folks in the U.S. are vaccinated.

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