U.S. Stocks Reach Record Highs As Trump Signs Stimulus Bill

Stocks have moved mostly higher in morning trading on Monday as trading resumes following the long holiday weekend. The major averages have all moved to the upside on the day, reaching new record intraday highs.

The Nasdaq has given back ground in recent trading, while the Dow and the S&P 500 have reached new highs. The Dow is up 317.48 points or 1.1 percent at 30,517.35, the Nasdaq is up 55.91 points or 0.4 percent at 12,860.64 and the S&P 500 is up 33.35 points or 0.9 percent at 3,736.41.

Buying interest has been generated in reaction to news that President Donald Trump has finally signed a $2.3 trillion government spending bill that includes approximately $900 billion in coronavirus relief funds.

Trump had previously resisted signing the legislation, calling for $600 in direct payments to individuals to be increased to $2,000.

House Democrats are set to vote on an increase in the direct payments later today, while Trump has called on the Republican-controlled Senate to do the same.

Trading activity is likely to be relatively subdued, however, with many traders likely to remain away from their desks ahead of the New Year’s Day holiday on Friday.

A lack of major U.S. economic data may also keep traders on the sidelines, although reports on home prices, pending home sales, and weekly jobless claims may attract attention in the coming days.

Airline stocks have shown a substantial move to the upside on the day, driving the NYSE Arca Airline Index up by 1.9 percent.

Considerable strength is also visible among energy stocks, which are moving higher even as the price of crude oil is nearly unchanged.

Reflecting the strength in the energy sector, the Philadelphia Oil Service Index is up by 1.8 percent and the NYSE Arca Oil Index is up by 1.5 percent.

Networking, banking, and chemical stocks are also seeing significant strength, moving higher along with most of the other major sectors.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday. Japan’s Nikkei 225 Index climbed by 0.7 percent, while South Korea’s Kospi inched up by 0.1 percent.

The major European markets have also moved to the upside on the day, with the U.K. markets closed for Boxing Day. The German DAX Index has surged up by 1.5 percent and the French CAC 40 Index has jumped by 1.3 percent.

In the bond market, treasuries have moved lower, offsetting the strength seen in the previous session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 2.9 basis points at 0.955 percent.

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