Biden has laid out steps that will stop COVID-19’s spread. The equity benchmarks saw a sharp rebound on Thursday due to the optimism of the Biden administration. Jobless claims for compensation remained low last Wednesday, reflecting an improvement in the labor markets. Spending from the infrastructure bill (or Build Back Better if it is passed) will likely boost the economy. Given this backdrop, popular ETFs, SPDR S&P 500 ETF (SPY), iShares ETF (IWM), Energy Select Sector SPDR (XLE (NYSE:)), and Industrial Select Sector SPDR (XLI) might be solid bets. Keep reading. The President Biden announced a pandemic plan on Thursday. It includes boosters for adults and hundreds of vaccine sites. There are also new requirements for travelers to test for the virus. Additionally, there is no cost for COVID-19 testing at home as he responds to the newly discovered omicron COVID-19 strain. On Thursday, the benchmark indexes saw a sharp rebound. In addition, Bank of America (NYSE:) noted that for the S&P 500 index December has historically been a strong month, with 2.3% average gains since 1936.

As unemployment claims remain low, it is encouraging that the labor market recovery appears to be on track. This indicates that employers are keeping their employees and hiring more. The proposed Build Back Better spending program and the infrastructure bill, which are estimated to cost trillions of dollars, will provide a significant stimulus for the economy.

New York-based financial analysis firm CFRA Research expects greater room for stocks to soar in December, given the market’s good performance after its October low. Therefore, popular ETFs SPDR S&P 500 ETF Trust (SPY), iShares Russell 2000 ETF (IWM), Energy Select Sector SPDR Fund (XLE), and Industrial Select Sector SPDR Fund (XLI) could be solid investments now.

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