Wall Street is closing at a record high on Monday as it enters the final week of 2020. President Donald Trump has signed a 900 900 billion economic aid package, as governments help reduce uncertainty by re-imposing travel and commercial curbs in response to new coronavirus variants. The move also includes money for other government functions by September, but Trump expressed frustration that public payments to the public were not large. New travel and business curbs threaten to emphasize global economic activity. The companies most affected by the epidemic – rest restaurants, rentals, airlines, the cruise industry – were among the biggest gainers in the early trade.
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The stocks got off to a moderately higher start in the last week of 2020 after President Donald Trump signed a 900 900 billion economic aid package, helping to reduce uncertainty between travel and re-implementation of commercial curbs in response to the new coronavirus variant.
The S&P 500 index rose 1% eastward by 2:50 p.m. The Dow Jones Industrial Average rose 244 points, or 0.8%, to 30,442 and the Nasdaq Composite rose 1%. The gains put the index on track to close at an all-time high.
Trump signed the measure, which also includes money for other government functions by September, despite frustration that payments to 600 people were not large. His signing helped remove uncertainty, as restored travel and business curbs threaten to emphasize global economic activity.
“By and large, it’s a kind of broad-based optimism, so far very good on the vaccine rollout, and a stimulus bill to bridge the gap,” said Roid Mayfield, investment strategist at Baird. That, “it’s really just one of the broadest strengths we’ve seen in the last few months.”
The stock also has seasonal tailwinds, Mayfield said. The market tends to climb in the last five trading days of December and the first two trading days of January, known as the “Santa Claus Rally”. Since 1950, the S&P 500 index has risen an average of 1.3% during those seven days.
Among the biggest gainers on Monday were the rest companies, the airlines and the cruise industry – the companies that were hit the hardest by the epidemic. American Airlines rose 3.4%, Norwegian Cruise Lines 2.2% and Carnival 9.9%.
Technical and telecommunications services stocks are a big part of the broad market boom. Apple was up 8.8% and Facebook was up 3.1%.
Shares of China’s e-commerce giant Alibaba Group rose 0.3 percent, while government regulators launched an anti-monopoly probe last week and the Ant Group’s stock market debuted, with finance nalin finance platform owned by Alibaba 33. % Stake, was suspended.
Treasury yields were broadly high, a sign of confidence in the economy. The 10-year Treasury yield, which could affect interest rates on mortgages and other consumer loans, was 0.94%.
Trading is expected to ease this week, as most fund managers and investors have kept their books closed for years. With New Year’s Day on Friday, it will be another holiday-short week.
The European index broadly closed, helped by more details about the European Union – the United Kingdom trade deals as part of the exit from the UK trade group. Germany’s DX rose 1.5%, while France’s CAC-40 rose 1.2%.
In Asia, the Shanghai Composite Index rose less than 0.1% to 3,397.29 while in Tokyo the Nikkei 225 rose 0.7% to 26,854.03.
Hang Seng fell 0.3% to 26,314.63 in Hong Kong after e-commerce giant Alibaba Group announced a share buyback increase from 6 6 billion to 10 10 billion.
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