The Dow, the S&P 500 is higher, but Trump supporters weigh in on gains –

The Dow, the S&P 500 is higher, but Trump supporters weigh in on gains

NEW YORK (Reuters) – Two and the S&P 500 ended higher on Wednesday with all-time highs, as investors bet on financial and industrial stocks. A Democratic sweep in Georgia over fiscal stimulus and infrastructure spending Will lead

But Wall Street gained first and the Nasdaq index closed lower after a swarm of protesters marched on the US Capitol on Wednesday as they tried to force Congress into the election of President Donald Trump to elect Joe Biden. The lawmakers were ousted after Trump supporters disbanded the building after standing by police officers. Some police responded with guns and tear gas.

“It was not a sharp market decline. Buyers have also come there. It is a bit shocking to see this disclosure on television, ”said Tim Griskey, chief investment strategist at the Invertis Council in New York.

Prior to the Trump supporter protest, the financials hit a 1-year high and were still higher on the day, while the material, industrial and energy sectors held their gains.

Rate-sensitive bank shares also rose, reflecting a 10-year US Treasury yield increase of more than 1%. [US/]

The Dow Jones Industrial Average gained 437.8 points or 1.44% to close at 30,829.4 points, the S&P 500 rose 21.28 points or 0.57% to 3,748.14 and the Nasdaq Composite fell 78.13 points or 0.61% to 12,740.79.

Democrats won one U.S. Senate race in Georgia and led in another, moving closer to a surprise sweep in a former Republican stronghold that would give them control of Congress and the power to pursue President-Elect Joe Baden’s policy goals . The final result is not expected until Wednesday.

As it developed, US Vice President Mike Pence opened a joint session of Congress to formally certify the victory of Democratic President-elect Joe Biden, rejecting President Donald Trump’s demand, in which he unilaterally rejected the electoral vote. gave.

A Democrat-controlled Senate, meanwhile, typically increases fiscal spending by increasing the likelihood of tax increases and tighter regulation, and would be a net positive for economic growth globally and thus for the most at-risk assets .

File photo: American flag covering the front section of the New York Stock Exchange (NYSE) in New York City, New York, US, November 9, 2020. REUTERS / Brendan McDermid

“People are focused on the excitement that will come,” said Tom Martin, senior portfolio manager at GLOBALT Investments in Atlanta. “The question is how big it will be and what will be contained in it. But anytime you have extra money to spend, it is positive for the markets. “

The Russell 1000 price index, which is heavily weighted towards cyclical sectors, rose 2.5%, while the growth index was down 1.1% with a large tech company weighting.

With the fall of Apple Inc, Microsoft Corp, Inc, Google-parent Alphabet Inc and Facebook Inc, there is an increased risk of antitrust scrutiny of companies holding big tech pressures.

Tesla Inc. was the only major technology stock trading 2.9% at $ 755.98.

The small-cap Russell 2000 index jumped 4% after reaching an earlier record high.

Hopes of a vaccine-driven economic recovery in 2021 prompted Wall Street’s main index to record high in late December, fueling a rally with those sectors already including banks, industrialists and energy .

AmerisourceBergen Corp gained 8.6% after the US drug wholesaler said it bought Walgreens Boots Alliance’s drug distribution business for $ 6.5 billion to expand into Europe. The Dow component Walgreens rose 4.5%.

Advancing issues on the NYSE in the ratio of 1.72-to-1; On the Nasdaq, 1.64-to-1 ratio favored advisers.

The S&P 500 posted 89 new 52-week highs and no new lows; The Nasdaq Composite recorded 318 new highs and 9 new lows.

Volume on US exchanges hit 16.6 billion shares on Wednesday, with an average of 11.39 billion for the full session over the last 20 trading days.

Reporting by Gertrude Chavez-Dreyfus; Additional reporting by Synad Carew in New York; Editing by Aurora Ellis


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