The US stock market rallied on Monday on the news that Donald Trump signed the long-awaited $ 2.3 trillion bailout bill. The act strengthened confidence in economic recovery.
But just last week, the incumbent US President called the bill a shame and demanded that the Congress increase payments from $ 600 to $ 2,000, as well as reduce some other expenses.
"The passage of the stimulus bill has allayed some concerns, and investors are relieved that there is help," said Peter Cardillo, chief market economist at Spartan Capital Securities.
On Monday, Democrats in the US Congress voted on a proposal to increase aid payments to Americans, but did not explicitly hope that it would receive support in the Republican-controlled Senate.
Many Republican associates oppose pay increases, and Trump does not have enough power to change them. Therefore, it is quite clear that there is a low chance that an increase in payments will be passed.
Going back to the stock market, ten of the eleven major sectors of the S&P 500 index have grown sharply, and the largest increases were from technology, consumer services and consumer discretionary rights.
Aside from that, the S&P 500 is expected to rise more than 15% this year amid soft monetary policy, high liquidity and the vaccination programs.
And in the last week of the year, trading volumes are expected to be small, despite statistics from previous years, when the winter season has always been a strong period for stocks.
In another note, senators also sought to overturn Trump's recent veto on the policy of introducing a $ 740 billion bill for the Department of Defense. If successful, it will be the first to overturn the veto made by Trump.
According to the president, he vetoed the bill, which has been passed every year since 1961, because he objected to liability protections for social media companies unrelated to national security. To add to that, he did not want to rename the military bases after the generals who fought for Confederation and slavery during the Civil War.
Although Trump's previous eight vetoes were upheld thanks to the support of Republicans, advisers said that this one has a high chance of being overturned. The bill was passed by both houses of Congress with more than two-thirds of the votes needed to overcome the presidential veto.