This is why Wall Street ignored most of the chaos in Washington

This is why Wall Street ignored most of the chaos in Washington

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However, if you just look at the performance of the stock market, it was a good day. The Dow (INDU) closed at a new high of all time, breaking 31,000 points for the first time in its history. The wider S&P 500 (SPX) also ended higher, as the Nasdaq Compound (COMP) closed in the red.

Quite simply: investors do not really look at what is currently happening. They look to the future and what it could mean for the companies in which they invest, or the economy as a whole.

And up to that point, the Senate waved in favor of Democrats late Wednesday, paving the way for President-elect Joe Biden’s economic agenda and probably more economic stimulus to help the country recover from the pandemic.

Although Democratic control of the House, Senate and White House may increase tax increases in the future, investors have chosen to look on the bright side – more government assistance during the crisis.

Biden has also pledged extensive investments in infrastructure and clean energy, all aimed at creating millions of jobs. It gave a boost supplies in the industrial and materials sector. Banks and financial firms have also climbed higher over the prospect of higher interest rates in the future, which translates into greater profits on their lending firms. Technical enterprises, which have the prospect of more regulation and examination, feeling pain.

So, despite the unprecedented chaos at the Capitol, Wall Street has mostly remained optimistic, even after shares of their midday declines.

America has overcome civil unrest in the past. Wall Street bets it will do the same this time.

Then again, the market can also get and sell a reality check on Thursday. After all, there is the ongoing pandemic and the worsening number of infections has led to stricter rules in different states. But once again, investors are likely to take the long view: the next government is expected to keep its promises to act vigorously to help U.S. businesses and workers grow strong again.

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