US Markets Hit New Records After Trump Signs Package

US stocks rallied on Monday, with each of Wall Street's main indexes closing at record levels as President Trump's signing of a long-awaited US$2.3 trillion pandemic aid bill increased optimism for an economic recovery.

In a sudden reversal late on Sunday, Trump backed down from his threat to block the hard-fought bill, restoring unemployment benefits to millions of Americans and averting a federal government shutdown.

"It's a positive tone to the US market and part of that is the signing of stimulus package by Trump, which appeared to be in doubt but is finally been accomplished," said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York.

"We still have a follow-on to the Christmas rally and the favorable market we've had for a while here," he added.

The Dow Jones Industrial Average rose 0.7 percent to 30,403, the S&P 500 gained 0.9 percent to 3,735 and the Nasdaq Composite added 0.7 percent to 12,899.

After a sharp recovery from a coronavirus crash in March, the S&P 500 is on track to rise more than 15 percent this year on the back of a loose monetary policy and a Covid-19 vaccine program that has raised hopes the economic environment will improve.

Democrats in the US Congress on Monday will put to vote a proposal for higher pandemic relief payments for Americans, although it appears unlikely to gain traction in the Republican-controlled Senate.

Adding to a global appetite for risk, Britain and the European Union clinched a lean post-Brexit trade deal on Thursday, while a mass Covid-19 vaccination drive in Europe was launched over the weekend. (Reuters)