US stocks closed higher on Monday after the extended holiday. This followed news that President Trump signed the $ 900 billion stimulus bill that now paves the way for the government to make direct payments to American families. Later, on the day the House of Representatives voted to increase the second round of direct payments to $ 2,000, as opposed to $ 600. All three major averages closed at record highs. The Russell 2000 declined. Most sectors in the S&P 500 index were superior, led by gains in the communications sector. The energy sector countered the trend. Stocks generally increase during the period between Christmas and New Year. This is known as the Santa Claus rally. Historically, January is a positive month for inventories. Over the past 10 years, the S&P 500 index has increased 60% of the time to an average gain of 1.2%. The dollar rose on Monday and gold prices remained almost unchanged.
The House voted to increase the second round of federal direct payments to $ 2,000 as Democrats adopt President Donald Trump’s calls to put more money in Americans’ pockets. The move would increase stimulus checks in the government financing and coronavirus relief package at the end of the year to $ 2,000 from $ 600.
The Chamber cancels the Defense Veto
The House voted to override President Donald Trump’s veto of an annual defense spending bill, placing the final steps of challenging the Republican president in the hands of the Republican-led Senate. The Senate will vote on Tuesday. The bill, known as the National Defense Authorization Act of 2021, passed the House on December 8, with the support of more than three-quarters of the House.