With trading resuming following the long holiday weekend, stocks moved mostly higher during Monday’s session. The advance on the day lifted the major averages to new record closing highs.
The major averages all finished the day firmly in positive territory. The Dow climbed 204.10 points or 0.7 percent to 30,403.97, the Nasdaq rose 94.69 points or 0.7 percent to 12,899.42 and the S&P 500 advanced 32.30 points or 0.9 percent to 3,735.36.
The strength on Wall Street came 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 remained subdued, however, with many traders still away from their desks ahead of the New Year’s Day holiday on Friday.
A lack of major U.S. economic data also kept traders on the sidelines, although reports on home prices, pending home sales, and weekly jobless claims may attract attention in the coming days.
Retail stocks showed a significant move to the upside on the day, driving the Dow Jones U.S. Retail Index up by 1.7 percent The index ended the session at its best closing level in over two months.
Considerable strength was also visible among networking stocks, as reflected by the 1.3 percent gain posted by the NYSE Arca Networking Index.
Airline and commercial real estate stocks also saw some strength on the day, while natural gas, housing and biotechnology stocks moved to the downside.
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 also moved to the upside on the day, with the U.K. markets closed for Boxing Day. The German DAX Index surged up by 1.5 percent and the French CAC 40 Index jumped by 1.2 percent.
In the bond market, treasuries regained ground after seeing early weakness, ending the session little changed. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, inched up by less than a basis point to 0.933 percent.
The U.S. economic calendar remains relatively lightly on Tuesday, potentially leading to another light trading day.
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