Wall Street Closes with Modest Gains on Brexit Deal

The SP 500 ended higher at the close of a shortened session on Thursday as investors headed into the long Christmas weekend with hopes that an imminent stimulus agreement, a Brexit deal, and the ongoing vaccine rollout will spell brighter days in the coming year.

All three major U.S. stock indexes ended in positive territory.

For the holidayshortened week, the SP 500 edged lower, the Dow eked out a nominal gain and the Nasdaq advanced.

While stocks tend to perform well in the closing days of December, a phenomenon known as the Santa Claus rally, the resurgent pandemic and upcoming Senate runoffs in Georgia have clouded the outlook this year.

The U.S. House of Representatives blocked President Donald Trumps attempt to change a 2.3 trillion coronavirus relief and government spending package after Trump insisted on 2,000 direct payments to Americans.

The move cast doubt as to whether the package passed by Congress on Monday would be signed into law and raised the threat of a partial government shutdown.

If stimulus doesnt get passed in some form or another it could mean severe consequences for the unemployed, said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

Britain reached a trade deal with the European Union after months of negotiations, just days before leaving one of the worlds largest trading blocs.

The Brexit deal might be acting as a buffer for the market in the sense that its counteracting the negativity of the stimulus…

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