Small “Santa Rally” As Futures Rebound After Traders Shrug Off Trump Veto Threat

After initially tumbling after President Trump shocked the establishment and traders with a surprise tirade against the $900 billion relief package, calling it a “disgrace” and demanded stimulus checks be raised to $2,000 from $600 while demanding that “wasteful and unnecessary items” be eliminated, futures staged a full rebound as analysts said investors shouldn’t worry about Donald Trump’s Tuesday attack on Congress’s coronavirus relief package as the president can only delay passage by about a month, while his prodding might boost checks to individuals.

Trump’s criticism, and implicit veto threat, “won’t alter the macro narrative,” Vital Knowledge founder Adam Crisafulli wrote in a note adding that “even if Trump actually vetoes (unlikely) and Congress fails to override it (also unlikely, given the stimulus/budget passed with veto-proof majorities), this will only delay the inevitable by 27 days (which would be unfortunate, but not material)… The big debate isn’t whether the $900b stimulus gets passed into law but instead if it represents a ‘down payment’ or the last major fiscal response to the pandemic,” with the outcome of Georgia Senate races in early January playing a “big role in answering that question

At 7:30 a.m. ET, Dow e-minis were up 42 points, or 0.17%, S&P 500 e-minis were up 6.5 points, or 0.18%, and Nasdaq 100 e-minis were flat.


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