Wall Street hits record high after Trump signs fiscal aid bill

Wall Street hits record high after Trump signs fiscal aid bill
A statue of George Washington stands as Federal Hall across Wall Street. Source: Reuters
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Daily US Times: On Monday, the main indexes of Wall Street hit record highs as President Trump’s signing of a long-awaited $2.3 trillion coronavirus pandemic aid bill bolstered bets on an economic recovery and drove gains in financial stocks.

In a sudden reversal late on Sunday, the president backed down from his threat to block the hard-fought relief package, restoring unemployment benefits to millions of Americans and averted a federal government shutdown. This was a boost for the Wall Street.

Sam Stovall, chief investment strategist at CFRA Research, said: “Trump signing the COVID relief and government spending bill has gotten uncertainty out of the way, and the market right now is on autopilot – creeping its way higher into the new year.”

All the 11 major S&P sectors were higher, with energy, industrials and financial among the biggest gainers.

The S&P 1500 airlines index added 2.2% as carriers are set to receive $15 billion in addition payroll assistance under the new government aid.

Cruise operators Carnival Corp, Norwegian Cruise Line Holdings Ltd and Royal Caribbean Cruises Ltd also rose between 3.3% and 4.3%.

Trading volumes are expected to be thin in the final week of this year that has historically been a seasonally strong period for equities.

After a sharp recovery from a Covid pandemic crash in March, the S&P 500 is on track to rise more than 15% this year on the back of a loose monetary policy, high liquidity and a coronavirus vaccine program.

You may read: President Trump signs Covid relief and spending package into law