Shares close at record highs on Monday as Wall Street enters the final week of 2020. President Donald Trump has signed a $ 900 billion economic aid package that helps reduce uncertainty as governments reintroduce travel borders. and business in response to a new variant of coronavirus. The move includes money for other government positions until September, but Trump has expressed frustration that payments to the public have not been higher. The new travel and business lines threaten to affect global economic activity. The companies most affected by the pandemic – restaurants, airlines, the cruise industry – were among the biggest winners of early transactions.
THIS IS A NEWS UPDATE. The previous story of AP follows below.
Actions began in the last week of 2020 moderately higher after President Donald Trump signed a $ 900 billion economic aid package, which helps reduce uncertainty amid the reimposition of travel and business boards in response to a new variant of coronavirus.
The S&P 500 index rose 1% since 2:50 p.m. east. The Dow Jones industrial average rose 244 points, or 0.8%, to 30,442, and the Nasdaq composite rose 1%. Earnings are about to close at historic highs.
Trump signed the measure, which includes money for other government positions until September, despite expressing frustration that payments of $ 600 to the public were not higher. His signature helped eliminate uncertainty, as the restoration of travel and business borders threatens to affect global economic activity.
“Broadly speaking, it’s a kind of widespread optimism, so good about the vaccine launch and the bill to stimulate the narrowing of the gap,” said Ross Mayfield, an investment strategist at Baird. a continuation of the broader force we have seen in recent months. “
Stocks also receive a seasonal tail wind, Mayfield said. The market tends to rise in the last five trading days in December and in the first two trading days in January, a phenomenon known as the “Santa Rally”. Since 1950, the S&P 500 index has risen by an average of 1.3% over the past seven days.
The companies most affected by the pandemic – restaurants, airlines and the cruise industry – were among the biggest winners on Monday. American Airlines increased by 3.4%, Norwegian Cruise Lines increased by 5.2%, and Carnival won 4.9%.
The actions of technology and communications services were an important part of the market rally. Apple rose 3.8% and Facebook rose 3.1%.
Shares of Chinese e-commerce giant Alibaba Group rose 0.3%, recovering some losses after falling last week, when government regulators launched an antitrust investigation and Ant Group’s stock market debut, a online financing platform in which Alibaba holds a 33% stake, has been suspended.
Treasury yields were generally higher, a sign of confidence in the economy. The 10-year Treasury yield, which may affect interest rates on mortgages and other consumer loans, was 0.94%.
Trading is expected to be easy this week, as most fund managers and investors closed their books for that year. It will be another shortened week of holidays, with New Year’s Day on Friday.
The European index closed largely, helped by more details about the EU-UK trade agreement as part of the UK’s exit from the trade bloc. The German DAX rose 1.5%, while the CAC-40 in France gained 1.2%.
In Asia, the Shanghai Composite Index rose less than 0.1% to 3,397.29, while the Nikkei 225 in Tokyo added 0.7% to 26,854.03.
Hong Kong’s Hang Seng fell 0.3% to 26,314.63 after e-commerce giant Alibaba Group announced it was expanding a share buyback from $ 6 billion to $ 10 billion.