Congress Pays-Up!

On Monday, in a 359 to 53 vote, the House overwhelmingly passed a fifth-round spending package. Monday night, the Senate approved the measure in a 92 to 6 vote. The president is expected to sign the legislation on Tuesday.

After six months of negotiations, Congress reached an agreement on a $900B coronavirus spending package. Just shy of $1 trillion, it is the second-largest economic relief bill in the nation’s history. Passed in March, the CARES Act totaled $2.2T.

The legislation includes $600 in direct payments to individuals, $300 per week of enhanced unemployment benefits, and funding for small businesses, vaccine distribution, food assistance, education and child care. It also covers rental relief, extending the nationwide eviction moratorium through January 31, 2021.

Monday’s market action was extremely volatile, with a 2.0% sell-off in the morning, which was followed by a 1.6% rally to the close. The S&P 500 Index was lower on Monday by 0.4%.