Stocks are rising as Wall Street appears to be overcoming violence in Washington

For future-oriented investors, the sweep of democracy in the Senate, which gives the party control over the White House and Congress, has been the most important news in recent days. Control of all three branches of government offers a new program for the Biden administration, which could mean faster and more generous passage of additional incentives to get the economy back on track.

This news has surpassed the shocking images of Trump supporters who revolted by storming the US Chapter building on Wall Street. The Dow rose more than 31,000 points on Wednesday for the first time in history and closed at a historical level.

The optimism on Wall Street is not a total surprise. Historically, US stocks have been shaken by civil unrest as long as the turbulence has no tangible impact on gains or growth.

If the market closed at current levels, the Dow would record its first score of over 31,000 points, and the Nasdaq would close over 13,000 points for the first time in history.

But anyone worried that stocks could rise too quickly for their own good can breathe, said Thomas Mathews, a market economist at Capital Economics. “We still don’t think stock prices seem too high relative to expected gains,” Matthews said in a note to clients.

Interest rates remain low for the time being, which is good news for equities, as it means loans are cheap for companies and investors have few other compelling options.

In addition, the launch of the vaccine and the potential additional government stimulus will trigger a strong recovery later in 2021, he said.