Stocks on Wall Street reached a record with investors on Friday and ultimately saw a chance to move ahead of the presidential election, as the continued proliferation of coronoviruses threatened to ease the outlook for the economy.
A string of events seemed to reassure investors that Joseph R. Biden Jr. will move to the White House in January without incident after about a week and half of the Trump campaign’s efforts to reverse the outcome of the vote.
Status of Georgia was called Friday added to his column the night before, with Arizona in favor of the former Vice President. Mr. Biden had won the election before those two calls, but he raised it The electorate beat by 306 votes, winning it decisively.
President Trump’s campaign also lost a court challenge in Michigan, withdrew one in Arizona and saw some of his lawyers Back from a case in Pennsylvania. Put together, those moves gave investors more clarity on what to expect in 2021 that gave the stock the necessary push to move into record territory.
“We can really do capitulation from the White House and be able to say that the election is finally behind us,” said Steve Sosnick, chief strategist for Interactive Brokers in Greenwich, Conn.
The S&P 500 climbed 1.4 percent on Friday, exceeding its closing record of 3,580.84 on 5 September. Wall Street played with the high for that day, first because of Presidential election scene A result that could lead to growth next year, and Pfizer later released surprisingly good test results for its vaccine candidate. The rally has dropped the S&P 500 by 9.6 percent this month.
And despite the level of infection that has transcended the catastrophic first phase of the outbreak – increasing the likelihood of a new lockdown to stem growth – investors appeared to bet on a short-term recovery in economic outlook.
Banks, industrial companies and small stocks – all of which are sensitive to near-term expectations for growth – were among the best performers on Friday’s day. Shares of companies that have become a barometer of sentiment toward the epidemic also reflected optimism: Simon Mall, the operator of shopping malls, grew 8 percent, and MGM Resorts rose more than 9 percent.
Companies that have benefited as consumers stayed home between the epidemic and epidemics such as Peloton Interactive and Zoom Video Communications.
Despite the possibility of an increase in cases of coronovirus in the United States and the proliferation of new efforts, this gain on Friday could harm the economy.
In addition to this threat, the virus poses a threat to the economy, with some analysts cautioning that investors still had some political uncertainty to navigate, namely because the balance of power in the US Senate resolved in two runoff elections in Georgia in January Remains to be
Democrats can still take control of the Chamber, possibly opening the door to a tax increase on corporations and wealthy individuals, who see it as a headwind to many stocks in the markets. Meanwhile, very little progress is being made in another round of federal economic aid, which most economists say is very necessary to keep the economy slowing down again.
“There is a lot of risk right now for this market to rally, and I expect that we will see a stretch in the near future,” said Doug Rivelli, president of Abel Noser, an institutional brokerage firm in New York.
Having said that, recent events have led to a strong appetite for shares among investors.
In the week following the election – in which Mr. Biden was declared president-elect on Saturday, and Pfizer and Bayonet announced that His vaccine candidate was 90 percent effective In clinical trials on Monday – money has been poured into equity markets.
Analysts at Bank of America Merrill Lynch noted on Friday that the week ended Wednesday is a $ 32.5 billion course in US equity funds, the second-largest weekly flow ever.