The U.S. stock market rallied on Monday after President Trump said citizens will receive a tariff benefit of up to $2,000, while the U.S. government shutdown nears an end.
NAS 100 – Daily Chart
The price of the NAS 100 has jumped on the day after finding support around 24,500. The target for the week will be the all-time highs. We have now created a range between the support and highs that will determine the future path for stocks.
“A dividend of at least $2000 a person (not including high income people!) will be paid to everyone,” Trump said on social media. He said the tariffs have brought in “trillions of dollars,” and he would hand out money to the public.
However, Treasury Secretary Scott Bessent seemed to suggest that this is not in the form of cash payments.
“The $2,000 dividend could come in lots of forms. It could be just the tax decreases that we are seeing in the President’s agenda, no tax on tips, no tax on overtime, no tax on social security, deductibility of older loans, those are substantial deductions,” he told ABC News.
Markets took the statement as a bullish sign after $1,500 checks during the Biden era caused a surge in meme stocks and cryptocurrencies. One hedge fund CIO said, “This Administration Will Spend The Next Year Getting As Much Money Into People’s Hands As Possible”.
The U.S. government shutdown is still in place, but there are small signs of progress. With a slowing jobs market and the Fed’s unwillingness to slash rates, Trump may look to creative options to boost the economy and the stock market amid all the talk of AI bubbles. If they do start unleashing the money printer, stocks and crypto could surge.
