January 6, 2020 was one to remember, because the market indexes soared though there was political unrest at the US Capitol.
Market Soars to Set Records Despite Political Unrest
Wednesday, January 6, 2020 was a day of news. Investors particularly look out for such days as part of online stock trading. Despite the political events that rocked the US Capitol, the Dow set a record high at close on Wednesday, soaring past 31,000 at a rate that was the fastest in 2 years. The stock market, in general, experienced a rally.
Political Unrest Did Nothing to Hamper Gains
The US Capitol was stormed by supporters of President Trump, with the intention of disrupting the joint Congress session where Joe Biden’s win over Trump was certified. With the runoff elections in Georgia, the Democratic Party won both the US Senate seats, reports MarketWatch quoting the Associated Press.
Dow Jones closed at 30,829.40, a rise of 1.4% or 437.80 points. It had earlier recorded a 31,022.65 all-time intraday high. The S&P 500 had a gain of 0.6%, 21.28 points, closing at 3,748.14. Nasdaq Composite closed lower by 0.6%, 78.17 points to close at 12,749.79.
What Caused the Growth?
Robertson Stephens Wealth Management chief economist Jeanette Garretty opines that the key aspect was how Biden’s policies would affect spending. Investors are hopeful of Biden’s strategies leading to more money for individuals. Garretty also points out investors’ assumption that states would get more money for getting the vaccine to the public. With the widespread use of the vaccine, investors believe the economy could reopen again.
We also saw the 10-year Treasury yield rise 8.6 basis points and finish higher than the 1% level, setting a nine-month record.
Not Everything Was Rosy
The Automatic Data Processing report focusing on employment in the private sector revealed that jobs saw the first drop since April. Jobs in the private sector dropped to 123,000.
The tech stocks index XLK fell too.
Days like these indicate the market could grow on the basis of hopes of a brighter near future, despite adverse events of the present. A clear understanding of the market situation and getting the prediction right are important to succeed in stock trading. Reputable online stockbrokers provide free stock trading software for investors.