rain.png
Tuesday July 27th, 2021 6:35PM

Wall Street keeps rising on Democratic wins, stimulus hopes

By The Associated Press

Major U.S. stock indexes surged to all-time highs Thursday as Wall Street bet that the Democratic sweep of Washington means more stimulus is on the way for the economy.

The S&P 500 rose 1.5% to a record 3,803. Investors were buoyed by Congress’ confirmation of Joe Biden’s presidential election win and a shift in control of the Senate to the Democrats and largely moved on from the previous day’s violence and chaos at the Capitol building.

With Democrats fully in control of Washington, Wall Street is anticipating the Biden administration and Congress will try to deliver $2,000 checks to most Americans, increase spending on infrastructure and take other measures to nurse the economy amid the worsening pandemic.

“The expectations are shifting to more stimulus, sooner, which is generally better for the economy and better for the market as well,” said Rob Haworth, senior investment strategy director at U.S. Bank Wealth Management.

The rally was broad-based, though the S&P 500′s technology sector notched the biggest gain, recouping losses after a pullback a day earlier. Treasury yields continued to rise, reflecting expectations that higher government spending will drive up inflation.

The Dow Jones Industrial Average, Nasdaq composite and Russell 2000 index of smaller companies also notched new highs. The Dow gained 211.73 points, or 0.7%, to 31,041.13. The tech-heavy Nasdaq climbed 326.69 points, or 2.6%, to 13,067.48. The Russell 2000 picked up 38.96 points, or 1.9%, to 2,096.89. The S&P 500 rose 55.65 points to 3,803.79.

Wall Street’s latest rally adds to gains from a day before, when stocks rose on the results of two Senate runoff elections in Georgia that went to the Democrats. But the market did pull back somewhat Wednesday after loyalists to President Donald Trump stormed the Capitol as lawmakers were certifying his loss to Biden.

Investors are largely looking past the current political ugliness — and the pandemic’s acceleration around the world — and are focusing instead on prospects for an improving economy. Beyond hopes for increased stimulus from Washington, much of Wall Street expects the rollout of COVID-19 vaccines to help daily life around the world get closer to normal. That has investors anticipating a explosive return to growth for corporate profits later this year.

The market “is really looking through to year-end at what looks like a really solid year for earnings growth,” Haworth said.

Trump may have backed up investors’ expectations that the turmoil engulfing Washington may be only temporary. Shortly after Congress certified his loss, he issued a statement saying there will be an “ orderly transition on January 20th.” Trump still claims falsely that he won, having appeared to excuse the violent occupation of the Capitol by his supporters. Earlier, Trump riled up the crowd with baseless claims of election fraud.

Even so, the market could be in for more choppy trading in the days before Biden takes over as president.

“We still see this as a market on edge with volatility higher than normal,” Haworth said. "We think there’s a lot of risk out there. Part of that is certainly political transition, part of it is certainly the virus and virus uncertainty.”

A report on Thursday showed that the economy remains fragile because of the worsening pandemic, but it wasn’t quite as bad as economists expected. Slightly fewer U.S. workers applied for unemployment benefits last week than the week before, at 787,000, when economists were forecasting an increase.

Another more encouraging report said that growth in U.S. services industries accelerated last month and was stronger than economists expected.

Anticipation of more stimulus for the economy, increased U.S. government borrowing and perhaps inflation across the country have been pushing Treasury yields to levels not seen since early in the pandemic. The 10-year yield rose to 1.08% from 1.02% late Wednesday, after topping the 1% level for the first time since March.

Higher interest rates allow banks to make bigger profits from making loans, as would a stronger economy, and financial stocks were again among the market’s leaders. JPMorgan Chase rose 3.3%, and Bank of America gained 2.2%.

Tech stocks also rose, recovering from weakness a day earlier on worries that a Democratically run Washington would target them with tougher regulations. Facebook rose 2.1% after losing 2.8% Wednesday.

Hong Kong’s Hang Seng index slipped 0.5% after the New York Stock Exchange reversed again and said it would delist three big Chinese telecoms companies following an earlier order from the White House. The companies are heavyweights in the Hang Seng.

Shares in those companies and Internet companies affected by an expanded ban on transactions with some Chinese companies’ apps fell sharply “because of the actions of Donald Trump, trying to hurt China,” said Francis Lun, chief executive officer for Geo Securities in Hong Kong.

“Saner heads, people with better reasoning, hope that when Biden becomes president he will try to correct the mistakes that Donald Trump has done in damaging the U.S.-China relationship,” Lun said.

___

AP Business Writer Elaine Kurtenbach and AP reporter Alice Fung contributed.

  • Associated Categories: Associated Press (AP), AP Online Headlines - Washington, AP Online Congress News, AP Elections, General Presidential Election News, AP Business, AP Business - Economy, AP Business - Financial Markets
© Copyright 2021 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
World reaction to the storming of the US Capitol
World leaders are condemning the storming of the U.S. Capitol by supporters of President Donald Trump
10:44AM ( 11 minutes ago )
The Latest: Barr says Trump conduct 'betrayal' of presidency
Former Attorney General William Barr says President Donald Trump’s conduct as a violent mob of his supporters stormed the U_S_ Capitol was a “betrayal of his office and supporters.”
10:34AM ( 21 minutes ago )
Stunned EU leaders yearn for Biden presidency -- ASAP
For European Union nations, Joe Biden’s Jan. 20 inauguration as the next U.S. president cannot come fast enough
10:29AM ( 27 minutes ago )
Associated Press (AP)
US unemployment claims slip to still-high 787,000
The number of Americans seeking unemployment aid fell slightly to 787,000, evidence of a job market stumbling in the face of the viral pandemic and the damage it has inflicted on the economy for nearly 10 months
10:16AM ( 40 minutes ago )
Chaos, violence, mockery as pro-Trump mob occupies Congress
There is a heavy police presence at the Capitol a day after a violent mob stormed the Capitol as lawmakers were meeting to confirm Joe Biden's presidential win
10:13AM ( 43 minutes ago )
Stocks rise on Wall Street after Congress blesses Biden win
Stocks are getting back to rallying on Wall Street after Congress, in a late-night session, certified Democrat Joe Biden's Electoral College victory
9:42AM ( 1 hour ago )
AP Online Headlines - Washington
Lawmakers vow to investigate police after Capitol breach
Lawmakers are vowing an investigation into how police handled Wednesday’s violent breach at the Capitol
7:39AM ( 3 hours ago )
Biden to introduce Judge Merrick Garland as attorney general
President-elect Joe Biden will introduce Merrick Garland as his pick for attorney general along with three others he has selected for senior Justice Department positions
7:25AM ( 3 hours ago )
Dems' Georgia alliance is diverse and broad. Is it durable?
President Donald Trump came to the north Georgia mountains Monday night ostensibly to goose turnout in the surrounding conservative strongholds and stave off strong Democratic challengers who threatened the GOP’s Senate majority in two runoff elections
7:12AM ( 3 hours ago )
AP Online Congress News
The Latest: Tempers flare as House debates PA electoral vote
A small group of House lawmakers came close to physically fighting early Thursday morning as the congressional count of electoral votes stretched into the wee hours and a Pennsylvania Democrat charged that Republicans had been telling “lies” about his state’s votes
2:24AM ( 8 hours ago )
The Latest: Senate quickly rejects challenge to Pa. electors
The Senate has quickly killed Republican objections to Pennsylvania’s electoral vote for President-elect Joe Biden
12:54AM ( 10 hours ago )
The Latest: Congress splits up to debate PA vote count
Republican Rep. Scott Perry of Pennsylvania and Republican Sen. Josh Hawley of Missouri have objected to the counting of Pennsylvania’s electoral votes, triggering up to two hours of debate in the House and Senate
12:29AM ( 10 hours ago )
AP Elections
The Latest: McCarthy likens Capitol riot to summer protests
House Republican leader Kevin McCarthy is comparing violence at the U.S. Capitol to protests against racial injustice over the summer after the killing of George Floyd
9:49PM ( 13 hours ago )
The Latest: Pelosi: Biden certification an example for world
House Speaker Nancy Pelosi says Congress’ certification of President-elect Joe Biden’s election win will show the world it won’t back down
9:20PM ( 13 hours ago )
The Latest: New York sends 1,000 National Guard troops to DC
New York Gov. Andrew Cuomo is sending 1,000 members of the state’s National Guard to Washington, D
9:14PM ( 13 hours ago )
General Presidential Election News
US trade deficit jumps to $68.1 billion in November
The U.S. trade deficit jumped to $68.1 billion in November as a surge in imports overwhelmed a smaller increase in exports
8:50AM ( 2 hours ago )
The Latest: South Africa buys 1.5 million doses of vaccine
South Africa says it will import 1.5 million doses of the AstraZeneca vaccine to inoculate the country’s health workers
8:29AM ( 2 hours ago )
South Africa buys 1.5 million doses of AstraZeneca vaccine
South Africa says it will import 1.5 million doses of the AstraZeneca vaccine to inoculate the country’s health workers
7:17AM ( 3 hours ago )
AP Business
Japan declares emergency for Tokyo area as cases spike
Japan has declared a state of emergency for Tokyo and three nearby areas as coronavirus cases continue to surge, hitting a daily record of 2,447 in the capital
4:58AM ( 5 hours ago )
Asian shares track Wall St rally on hopes for stimulus
Shares have risen in Asia after Wall Street rallied on expectations of more stimulus for the economy despite chaotic scenes in Washington when Trump supporters stormed the U.S. Capitol
3:09AM ( 7 hours ago )
Kim vows to bolster North Korea's military at party meeting
North Korea leader Kim Jong Un has vowed to strengthen the country’s military defenses in a speech at a major ruling party meeting that provides insights into his priorities amid growing economic challenges and a U.S. presidential transition
9:17PM ( 13 hours ago )
AP Business - Economy
World shares mixed as investors watch for US vote outcome
World shares are mixed and U.S. futures have declined as investors await final results of Senate runoff elections that will determine whether Democrats take control of both houses of Congress
4:36AM ( 1 day ago )
Asian shares mostly lower as virus, China-US tensions weigh
Asian shares are mostly lower as surging virus counts and China-U.S. tensions weigh on sentiment
12:58AM ( 1 day ago )
US stocks recoup some losses after sharp slide to start 2021
U.S. stocks are closing higher Tuesday, regaining their footing a day after suffering their worst loss in months amid the worsening pandemic and potentially market-moving Senate elections
4:15PM ( 1 day ago )
AP Business - Financial Markets
World reaction to the storming of the US Capitol
World leaders are condemning the storming of the U.S. Capitol by supporters of President Donald Trump
10:44AM ( 11 minutes ago )
Stunned EU leaders yearn for Biden presidency -- ASAP
For European Union nations, Joe Biden’s Jan. 20 inauguration as the next U.S. president cannot come fast enough
10:29AM ( 27 minutes ago )
The Latest: Cleveland Browns facility still closed
The Cleveland Browns remain away from their facility and practice field while awaiting COVID-19 results only days before their first playoff game in nearly two decades
10:19AM ( 36 minutes ago )
After excusing violence, Trump acknowledges Biden transition
President Donald Trump says there will be an “orderly transition on January 20th” now that Congress has concluded the electoral vote count certifying President-elect Joe Biden’s victory
10:18AM ( 37 minutes ago )
Kenya says 1st AstraZeneca vaccine doses to come next month
Kenya’s health minister says the country is expected to start receiving 24 million doses next month of the COVID-19 vaccine developed by AstraZeneca and Oxford University
10:18AM ( 38 minutes ago )