Wall Street broke records on Monday after President Trump signed the $ 2.3 trillion pandemic bill on Sunday, ending months of political disputes and uncertainties.
The Dow Jones Industrial Average closed at 204.10 points, or 0.68 percent, to 30,403.97 after Trump stepped back from a previous threat to block the project, which restores unemployment benefits for millions of Americans. By signing the bill, he also helped prevent a federal government shutdown.
The S&P 500 closed up 0.87 percent to 3,735.36, while the high-tech Nasdaq rose 0.74 percent to 12,899.42. All three indexes ended the day at record levels.
The project offers a financial boost to some of the most vulnerable citizens and businesses in the United States, including an extra $ 300 a week in unemployment insurance and $ 325 billion in aid to small businesses, which were crushed because the pandemic led to people shopping online instead of in stores.
Aid, along with ongoing vaccines, will provide much-needed protection for an economy that has been hampered yet again by rising cases, which is forcing further state restrictions on indoor meals and other activities to reduce the spread of the disease. deadly, experts said.
“Trump signed the relief from COVID and the government spending bill took the uncertainty out of the way, and the market is now on autopilot – moving further into the new year,” said Sam Stovall, chief investment strategist at CFRA Research.
The struggling travel industry was driven by the news with airlines scheduled to receive $ 15 billion in additional payroll assistance.
Cruise operators also had a boost with Royal Caribbean Cruises up 3%, Carnival Corp. with 4% and Norwegian Cruise Line Holdings with 3%.
On Monday, Goldman’s chief economist, Jan Hatzius, raised his forecast for the country’s first quarter GDP from 3% to 5%, largely because consumers will receive stimulus payments and unemployment benefits.
The stimulus package gives $ 600 to taxpayers who earn up to $ 75,000 a year and couples with an income of up to $ 150,000, and to each dependent child.
Trump asked Congress to replace $ 600 checks with $ 2,000 payments – a measure supported by Democrats, but which never came to the final bill.