Dow jumps 400 points to close at a record amid Georgia runoffs, escalating Capitol protests
The Dow Jones Industrial Average rose to an all-time high on Wednesday, with investors optimistic about the prospects of additional fiscal stimulus as results from the runoff elections in Georgia rolled in.
The 30-Dow climbed 437.80 points, or 1.4%, to end the day at 30,829.40, a record. The Dow briefly rose more than 600 points earlier in the session and hit an intraday all-time high. The S&P 500 advanced 0.6% to 3,748.14 and hit an intraday record. The tech-heavy Nasdaq Composite closed lower by 0.6%.
Stocks closed off their highs, and the CBOE Volatility Index, a gauge of investor fear, moved higher heading into the close, as protestors stormed the Capitol just after lawmakers met to count the Electoral College votes and declare Joe Biden the presidential election winner. Still, the Dow and S&P 500 closed solidly higher on the day and Treasurys, normally a safety trade, declined.
The 10-year Treasury note yield topped 1% for the first time since March. At market close, the benchmark rate was at 1.03%. Yields move inversely to prices.
Democrat Raphael Warnock was projected to win the Georgia U.S. Senate special election runoff against incumbent Republican Kelly Loeffler, according to NBC News. In the other Senate runoff election, Democrat Jon Ossoff was also projected to defeat Republican Sen. David Perdue, NBC said.
If both Democrats win, that would make a 50-50 tie in the upper chamber, with Vice President-elect Kamala Harris as the tiebreaker vote to give the party control of the Senate. This outcome could facilitate the passing of new coronavirus relief, raising hope for the country’s economic recovery, some investors speculated.
Goldman Sachs expects another big stimulus package to the tune of $600 billion in the near term if Democrats prevail and take the Senate.
Reference: CNBC
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