U.S. stocks closed at a record high on Wednesday, as Joe Biden was sworn in as the 46th president – the new commander-in-chief setting a record for share gains between election and inauguration.
The S&P 500 benchmark rallied to close 14% higher on the opening day than on election day, beating a record set by President Hoover in 1928, when the S&P rallied 13.3% in the same period, according to MarketWatch .
Biden will waste some time turning the page on the Trump era, attendees said, signing 15 executive actions this afternoon on issues ranging from the COVID-19 pandemic to the economy to climate change.
“I’m not sure the day’s policy has done much, but certainly expectations for more billions of incentives,” said Ross Mayfield, an investment strategy analyst at Baird in Milwaukee, Wisconsin.
Dow has gained about 57%, and the S&P 500 has advanced about 68% since Donald Trump took office on January 20, 2017, which compares to a 65% increase in Dow and a 75% increase in S&P in the first mandate of the Obama Administration.
Major Wall Street indices have risen in record in recent months, with the blue Dow rising by about 13% since the November presidential election as investors bet on a strong economic recovery in 2021 behind the launch of the COVID-19 vaccine. and a larger pandemic mitigation plan.
Shares of the world’s largest streaming service Netflix rose on Wednesday after it said it would no longer have to borrow billions of dollars to fund its TV shows and movies.
The rest of the FAANG group jumped with earnings in the coming weeks. The NYSE FANG + TM index also rose.
“It’s a day of technical performance, which is pretty rare in the last two or three months, because the cyclical rotation has started to go on,” Mayfield said.
Almost all of the 11 major S&P sectors advanced in afternoon trading, with communications services, discrete consumer and technology among the biggest winners.
Concluding the results of the large American lenders, Morgan Stanley escaped despite recording a quarterly profit that blew previous estimates due to the strength of its business.
Given the stock market valuations of almost 20 years, investors are hoping for corporate results and the profit prospects will help them determine the extent to which the valuations are justified.
Unofficially, the Dow Jones industrial average rose 257.86 points, or 0.83 percent, to 31,188.38, the S&P 500 gained 52.94 points, or 1.39 percent, to 3,851.85, and the Nasdaq Composite added 260.07 points, or 1.97 percent, to 13,457.25.
With Reuters