REUTERS: Stocks on Wall Street hit record highs Thursday when investors pledged that Democrat-controlled Congress will deliver more stimulus spending to help the U.S. economy overcome a steep recession with a pandemic .
The Dow, S&P 500 and Nasdaq set new heights amid growing calls for President Donald Trump to be ousted, one day after Trump supporters stormed the U.S. Capitol in an attack horror of American democracy.
U.S. House Speaker Nancy Pelosi urged Trump to resign immediately during the 25th Amendment. President Joe Biden accused Trump of future violence and said Wednesday was one of the darkest days in U.S. history.
“The market is now overlooking Trump and he is looking forward to Biden’s leadership, more structure and motivation,” said Dennis Dick, a trader at Bright Trading LLC.
“It is clear that Democratic Transport will be more concerned about small businesses, and on Main Street.”
Economy-linked finances jumped as industry and materials sectors hit new records on what Biden expected to put up a larger fiscal package and encourage infrastructure spending with Democrat-controlled Congress.
Rate-sensitive bank shares were acquired, following another rise in the U.S. Treasury’s 10-year benchmark yield above 1per percent.
Plain vanilla growth stock, by and large, is less likely to benefit from increased incentive consumption, said David Bahnsen, chief investment officer at Bahnsen Group in Newport Beach, California.
“Total value type stocks are probably outperforming growth,” Bahnsen said. “On the fringe, if they’re going to get another US $ 1 trillion and push bond yields higher and the yield curve slope steeper, banks are going to win.”
The S&P 500 technology index was larger than it made up for its losses from an earlier day, when shares of some of the largest technology companies fell for fear of greater regulation.
The NYSE FANG +TM index, which includes major FAANG stock group that has led a Wall Street rally from pandemics, gained more than 2per percent.
Officially, the Dow Jones industrial average rose 211.66 points, or 0.69per cents, to 31,041.06, the S&P 500 gained 55.69 points, or 1.49per cents, to 3,803.83 and the Nasdaq Composite added 325.78 points, or 2.56per cents, to 13,066.57.
The number of Americans filing for unemployment benefits fell sharply last week, while remaining high, a report from the Labor Department showed, as the labor market recovery appears stops as COVID-19 pandemic disease threatens to take over the country.
“With more encouragement coming, even if we miss applications, it will be a little harder, because we know there will be more support for those who are recently unemployed,” said Max Gokhman, head of asset allocation at Pacific Life Fund Advisors in Newport Beach, California.
Investors are now awaiting an extensive jobs report in December, expected on Friday.
DXC Technology Co. has risen as a French IT consulting firm Atos SE is making a more than US $ 10 billion investment approach to its U.S. competitor, according to two sources familiar with the matter.
Electric car maker Tesla Inc jumped to the top, with its chief entrepreneur and billionaire Elon Musk surpassing Amazon.com Inc. chief executive Jeff Bezos to become the richest man in the world. -world, according to a report.
(Reporting by Herbert Lash, additional commentary by Devik Jain and Medha Singh in Bengaluru; Editing by Marguerita Choy)