Equity markets are off to a cautious start to the week despite a breakthrough in stimulus negotiations in Washington that agreement on a $900B stimulus package. Weighing a bit on sentiment elsewhere, Brexit talks are in a precarious state as the UK finds itself in literal quarantine on the discovery of a new Covid-19 virus strain.
A $900 billion stimulus package agreed by US Congress but likely set to be signed off by Congress and President Donald Trump in coming days, the new stimulus package includes $15 billion in airline bailout money, extension of $300/week supplemental jobless benefits through March, $600 stimulus checks, but no funds for state- and local government aid.
The US equity market sold off. The agreement on a large stimulus package over the weekend has not boosted sentiment notably as the last days of 2020 wind down this week and next. Areas of interesting in the S&P 500 index include the 3,700 area, which was near the prior top and seems to be a local pivot level.