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Wall St. touches new highs as Trump signs fiscal aid bill

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Stock markets around the world enjoyed strong gains after President Donald Trump mutedly signed the $2.3 trillion pandemic aid bill.

On the first day of trading since Christmas – and the UK’s Brexit deal 24 hours earlier – relieved investors helped to drive US stock indices to intra-day peaks, while Germany’s Dax climbed to its highest ever level.

“We still have a follow-on to the Christmas rally and the favorable market we’ve had for a while here,” said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York.

The Dow Jones Industrial Average .DJI rose 204.1 points, or 0.68%, to 30,403.97, the S&P 500 .SPX gained 32.3 points, or 0.87%, to 3,735.36 and the Nasdaq Composite .IXIC added 94.69 points, or 0.74%, to 12,899.42

Aviation and cruise lines stocks showed promise as theS&P 1500 airlines index.SPCOMAIR gained 0.9% as carriers are set to receive $15 billion in addition to payroll assistance under the new government aid.

Cruise operators Royal Caribbean Cruises Ltd RCL.N, Carnival Corp CCL.N, and Norwegian Cruise Line Holdings Ltd NCLH.N each rose by at least 3%

On a sector basis, gains were led by communication services. SPLRCL, consumer discretionary.SPLRCD and tech.SPLRCT as each climbed more than 1%.

Trading volumes are expected to be thin in the final week of the year that has historically been a seasonally strong period for equities.

Asian markets had already made gains overnight as they were the first major stock indices to respond to Trump’s change of heart. Earlier, Japan’s Nikkei advanced 0.7% and China stocks also rose, also helped by strong industrial profit data

Tesla Inc TSLA.O gained  0.3% after a report that the electric-car maker will start operations in India early next year.

Lockheed Martin Corp LMT.N advanced 0.6% after the fighter jet maker said it delivered 123 F-35 jets in 2020, near the top end of its revised outlook.

Volume on U.S. exchanges was 9.93 billion shares, compared with the 11.45 billion average for the full session over the last 20 trading days.

The S&P 500 posted 35 new 52-week highs and 1 new low; the Nasdaq Composite recorded 242 new highs and 17 new lows.

The overall out looked positive as all the 11 major S&P sectors were higher, with financial, energy, and industrials among the biggest gainers.

After a sharp recovery from a coronavirus crash in March, the S&P 500 is on track to recover in the coming year as the COVID vaccination program is gathering pace and economic recovery is been foreseen in near future.

 

 

 

 

 

 

 

 

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