Stocks Go Parabolic To All-Time Highs On Biden, Vaccine And Pro-Business Senate Gridlock
Some U.S. stocks soared to all-time highs on Monday following Joe Biden’s electoral victory and good news in the race for a coronavirus vaccine, while others such saw a selloff such as Zoom, Peloton and stay-at-home stocks.
The Dow Jones Industrial Average rose as much as 5.7 percent, setting its first intraday record since February and coming within about 70 points of the 30000 mark before paring some gains. The S&P 500 rose as much as 3.9 percent — also an intraday record.
The the tech-heavy Nasdaq closed in negative territory as hopes for a vaccine turned traders away from software stocks and other members of “stay-at-home” trade. Some investors said the reversal was among the worst they’d had seen.
Shares of Zoom fell more than 16 percent and Peloton sold off more than 21 percent. Roku was down 10 percent and Netflix was down 4 percent. However, airlines, cruise lines and lodgings surged on hopes of a broader economic reopening.
Listen to GHOGH with Jamarlin Martin | Episode 73: Jamarlin Martin Jamarlin makes the case for why this is a multi-factor rebellion vs. just protests about George Floyd. He discusses the Democratic Party’s sneaky relationship with the police in cities and states under Dem control, and why Joe Biden is a cop and the Steve Jobs of mass incarceration.
Drugmaker Pfizer announced on Monday that its vaccine was more than 90 percent effective in Phase two trials at preventing the disease. It’s the most hopeful sign yet that one of the many vaccines in development can effectively keep the deadly virus at bay.
Wall Street is betting that gridlock on Capitol Hill will stymie a Democratic agenda. The stock market’s recent run may suggest that investors believe the prospect of a divided government is good for business—and their portfolios, Newsweek reported.
With a Democratic White House and Republican-controlled Senate, investors appear to be betting that divided government means no large tax hike, no major increase in environmental or financial regulations and no Green New Deal.
However, two runoff races for Georgia‘s Senate seats could give Democrats a shot at taking both houses of Congress in January.