Wall Street Hits Record Highs as Trump Signs Fiscal Aid Bill

By Ilana Siyance

On Monday, U.S. stocks rose, with Wall Street’s main indexes hitting record levels as President Donald Trump signed the $2.3 trillion fiscal aid bill. The long-awaited pandemic aid is creating optimism that an economic recovery will be forthcoming. The bill includes the $900 billion Covid-19 relief bill which will restore unemployment benefits to millions of Americans and prevent a federal government shutdown.

“Stocks are riding the coattails of the additional stimulus program and that is for good reason,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management in Minneapolis, Minnesota. “You’ve still got monetary and fiscal stimulus that is in motion and that clearly provides economic stability, medical progress for COVID-19 continues to evolve and that will unfold at a more accelerated rate now as you get into the new year and importantly, the macro environment is favorable for stocks,” Sandven said.

President Trump had threatened to stall the bill last week, trying to force Congress to raise pandemic stimulus checks to Americans from $600 to $2000. The House will vote later on Monday as to the amount of the payments.

The Dow Jones Industrial Average closed on Monday at 30,403.97, up some 204 points or .7 percent up for the day. Before 11a.m., the index had touched records highs. The NASDAQ climbed .7 percent to 12,899.42. The NASDAQ gains were also driven by Tesla Inc which was up 0.90% during the day, due to a report that the electric-vehicle maker will begin operations in India early 2021. The S & P 500 rose .9 percent to 3,735.36.

As reported by Reuters, the S&P 500 got a boost from the airlines index, which gained 1.5 percent as the bill sets aside $15 billion in aid for air carriers, in addition to the new payroll assistance program (PPP). Cruise lines, battered by the pandemic, also rose. Royal Caribbean Cruises Ltd, Carnival Corp and Norwegian Cruise Line Holdings Ltd each saw their stock prices increase by at least 4 percent on Monday. After losing ground in March, the S & P is now poised to gain over 15% this year, thanks to low interest rates, high liquidity and the rollout of the COVID-19 vaccine. Overall, trading volumes are projected to be light in the final week of 2020, even though it is historically a strong season for equities.

“Equities seem poised to end the year on a high note, and I think for good reason,” Sandven said.