That’s why Wall Street ignored most of the chaos in Washington

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However, if we only looked at the performance of the stock market, it was a good day. Dow (UNJUST) closed a new historical record and surpassed 31,000 points for the first time in its history. The wider it is S&P 500 (SPX) also ended above, as Nasdaq Composite (COMP) dark red.

Simply this: investors do not look at what is happening now. They look to the future and what it could bring to the companies they invest in or to the economy as a whole.

And until then, the Senate has sided with Democrats late Wednesday, paving the way for President Joe Biden’s economic agenda and probably more economic stimulus to help the nation recover from the pandemic.

Even if democratic control of the House, Senate and White House could mean fiscal increases in the future, investors have chosen to look on the bright side – more government aid during the crisis.

Biden has also promised ample investment in infrastructure and clean energy, all with the aim of creating millions of jobs. This helped growth stocks in the industrial and material sectors. Banks and financial firms have also grown in the outlook for higher interest rates in the future, which translates into higher profits for their lending businesses. Technology companies facing the prospect more regulation and control, I felt some pain.

So that’s why, despite the unprecedented chaos at the Capitol, Wall Street remained largely optimistic, even after stocks went out of the afternoon highs.

America has overcome civil unrest before. Wall Street is betting it will do it again.

Then again the market could also receive reality check on Thursday and it will sell. There is, after all, the ongoing pandemic and the worsening number of infections have led to stricter rules in different states. But again, investors are likely to have a long opinion: the next administration is expected to deliver on its promises to act forcefully to help American business and workers return to power.

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