US futures rose on Wednesday in overnight trading, as investors digested the likely event of a Democratic Congress and continued to watch past riots in the US Chapter.
The Dow Jones Industrial Average futures rose 125 points. The S&P 500 futures gained 0.6% and the Nasdaq 100 futures added 0.9%.
During Wednesday’s trading session, the markets were largely unaffected by the chaos in Washington caused by the pro-Trump riots in the US Chapter. Lawmakers had just begun counting the votes of the Electoral College and officially declared President-elect Joe Biden the winner, when protesters stormed the chamber.
On Wednesday night, the Capitol building was secured, and Congress met to continue the process of confirming Biden’s victory. Senate Majority Leader Mitch McConnell said the Senate will certify the winner of the 2020 election on Wednesday night.
“The strength of the country is our institutions and laws,” Ed Keon of QMA told CNBC. “Seeing this is daunting, but we will predominate and I think that is the message of the markets.”
“I think the reason the markets aren’t too shaken is that it won’t change the power transition,” added Tom Lee, co-founder of Fundstrat Global Advisors.
On Wednesday, US stocks rose as the results of Georgia’s Senate election emerged. Minutes after the closing bell, NBC projected that Democrat Jon Ossoff defeated Republican David Perdue. This comes after NBC, previously projected Democrat Raphael Warnock, defeated Republican Sen. Kelly Loeffler in the second round.
Georgia’s election results create a 50-50 Senate that Democrats will control, thanks to a tie vote in President-elect Kamala Harris. A Senate-held Senate is widely expected to promote a more robust stimulus package, speculation that spurred action Wednesday.
The Dow Jones industrial average climbed more than 400 points or 1.4% to close at a record high. The S&P 500 rose 0.57%, reaching an intraday high during the session. The two media closed their highs amid the riots.
The Nasdaq Composite performed relatively poorly, falling 0.6% as Facebook, Amazon, Apple, Netflix and Google-parent Alphabet all closed below.
The reference level of the low ceiling Russell 2000 increased by almost 4% to reach the level of 2,050, in the hope of additional tax aid.
The 10-year Treasury yield exceeded 1% for the first time on Tuesday, at the end of the pandemic period. The jump in yields triggered an increase in bank stocks on Wednesday
Amid the chaos, the cryptocurrency Bitcoin has exceeded $ 36,000.
The Department of Labor publishes last week’s unemployment claims on Thursday at 8:30. Economists surveyed by the Dow Jones expect 815,000 Americans to apply for unemployment last week, compared to 787,000 in the previous week.
Bed Bath & Beyond, Constellation Brands, Walgreens Boots Alliance and Conagra report quarterly earnings before the bell on Thursday. Chipmaker Micron reports after the bell.
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