Indexes hit high at Wall Street, on Monday as the U.S. President Donald Trump signed $900-billion economic aid package bolstered bets on economic recovery. This move led to gains in financial and energy stocks.
Trump backed down from his threat to block the hard-fought bill, on Sunday, restoring unemployment benefits to millions of Americans and averted a federal government shutdown.
“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,” said Sam Stovall, chief investment strategist at CFRA Research.
Companies that were hit the hardest by the pandemic — restaurants, airlines and the cruise industry — were among the biggest gainers.
All the 11 major S&P sectors were higher, with financial, energy and industrials among the biggest gainers.
The S&P 1500 airlines index added 2.2% as carriers are set to receive $15 billion besides payroll assistance under the new government aid.
After a sharp recovery from a coronavirus 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 COVID-19 vaccine program.
