An unexpected pocket veto by President Trump could cause a government shutdown and delay adoption of the $900 billion economic stimulus and aid to individuals and businesses that was approved by Congress earlier this week, the bill is almost certain to become effective within weeks, which is why stocks closed the holiday-shortened week little-changed and a fraction away from its all-time closing high.
The pocket veto is a shrewd maneuver. An outright veto could be overridden by Congress, but a pocket veto cannot be overridden for 10 days. By then, Congress will be back home, further delaying the $320 billion aid for small businesses.
Although exactly how the political drama in D.C. will play out remained unclear, the stock market was unfazed. Trading in the Standard & Poorâ€™s 500 stock index, which closed at 1 p.m. for Christmas Eve, gained +0.35% from Wednesday, lost -0.17% from last Fridayâ€™s close, and was up a whopping +49.34% from the March 23rd bear market low. At 3,703.06, the index was fractionally off its all-time closing high, reached one week ago.
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