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With Joe Biden at the helm of affairs now, the expectations that the market will see an improved boost is high.
Wednesday was a historic day in the United States as it marked the new era of Joe Biden’s Presidency, sending US stocks to new highs. The market was particularly pumped as the President signed executive orders that rolled back some of the policies from the last administration.
Responding to the dawn of the new era, the Dow Jones Industrial Average (INDEXDJX: .DJI) jumped to 31,188.38, accompanied by an 0.83% growth. The S&P 500 Index (INDEXSP: .INX) surged by 1.39% adding 52.94 points to 3,851.85. The Nasdaq Composite (INDEXNASDAQ: .IXIC) comes off as the biggest gainer with a 1.97% boost to 13,457.25 after adding 260.07 points.
“The market reacted to the election a while back and it did so in a way that was positive to the nomination of President Biden,” said Sylvia Jablonski, chief investment officer at Defiance ETFs in New York, “Americans are ready for the next chapter and taking some of that readiness and investing back into the market.”
The FAANG stocks impressed yesterday with Netflix Inc (NASDAQ: NFLX) leading the market with gains. The online moving streaming firm rallied by 16.85% to $586.34, setting a new daily record. The shares of the firm have beaten analysts’ projection of strained performance this year amid increased competition.
“What’s interesting about Netflix is that they didn’t crash, when the economy crumbled. There was this thought that perhaps COVID would actually be bad for them because people would not want to spend money, but it was the total opposite. Everybody signed up for these streaming services,” said Jablonski.
Facebook, Inc (NASDAQ: FB) added 2.44% to $267.48 per share, Apple Inc (NASDAQ: AAPL) saw a 3.29% boost to $132.03, Amazon.com Inc (NASDAQ: AMZN) closed trading up 4.57% to $3,263.38, and Google’s parent firm Alphabet Inc (NASDAQ: GOOGL) complemented the whole gains with 5.36% to $1,880.07
US Stocks to See Better Days
With Joe Biden at the helm of affairs now, the expectations that the market will see an improved boost is high as the President has reiterated plans to roll out more robust stimulus packages in the trillions to aid the ailing economy. With the common man set to benefit from these stimulus cheques, their purchasing power will be impacted which is good for firms like Amazon.
“I would have assumed coming into the year that had the Democrats swept the Senate, the House and won the presidency that the markets would have sold off on the back of a potential increase in the corporate tax rate in the future,” John Petrides, portfolio manager at Tocqueville Asset Management, told Yahoo Finance. “Clearly I think investors are focused on the short term and Biden’s go-big policy on fiscal stimulus, which is clearly much needed as the COVID cases continue to rip through the U.S.”
The better days under President Joe Biden is set to be encompassing with Janet Yellen at the helm of affairs as the Treasury Secretary.