Wall Street Close: Bulls cheer Trump’s surprise signing of stimulus amid low volume

US equity rallied despite holiday-thinned trading as American President Donald Trump backs covid aid package.
Dow Jones Industrial Average added 0.68% while the S&P 500 jumped 0.87%.
The Nasdaq Composite ended 0.74% higher after refreshing the record top to 12,930.

Anil Panchal FXStreet

US President Donald Trump offered a Santa rally to Wall Street benchmarks during Monday. The White House Leader surprised global markets by signing the US coronavirus (COVID-19) aid relief bill on Sunday.

Read: Forex Today: US stimulus bill signed, equities run

Despite demanding an increase in paycheck amount to $2,000 and removal of section 230, US President Trump offered a Christmas gift to Wall Street benchmarks as all three key indices refreshed all-time high amid an otherwise dull session. The house currently debates a bill to provide in $2,000 direct stimulus checks while a senior officer from the US Treasury suggests sending $600 stimulus checks to individuals this week as previously planned.

The Dow Jones Industrial Average (DJI30) added 0.68% to end at 30,403.96 points after refreshing all recorded top with 30,525.56, while the S&P 500 eased from an all-time high of 3,741.23 to 3,735.13, up 0.87% on a day, by the time of closing. Further, the Nasdaq Composite followed suit by rising to the record top of 12,930.89 before closing with 0.74% gains to 12,899.42.

Stocks of Apple and Disney contributed to Dow’s run-up whereas technology giants DXC Technology Company and Xerox Holdings Corporation could be spotted helping the S&P 500.

While cheering the stimulus-led rally, equity bulls ignored the downbeat reading of the US Dallas Fed Manufacturing Business Index for December, down to 9.7 from 12 prior. Also on the negative side is the jump in the COVID-19 cases in the UK.

Looking forward, the year-end holiday season can keep restricting market moves amid a light calendar and low volume. Though headlines concerning the virus and vaccine may offer intermediate moves.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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