FILE PHOTO: The Wall Street sign is pictured at the New York Stock exchange (NYSE) in the Manhattan borough of New York City, New York, U.S., March 9, 2020. REUTERS/Carlo Allegri
(Reuters) -U.S. stocks rose on Wednesday with the Dow and the S&P 500 notching record highs as investors piled into financial and industrial stocks on bets that a Democratic sweep in Georgia would lead to more fiscal stimulus and infrastructure spending.
Financials hit a 1-year high, while materials, industrial and energy sectors jumped between 2.5% and 3.4%.
Rate-sensitive bank shares jumped about 5%, tracking a surge in the benchmark 10-year U.S. Treasury yield.
Democrats won one U.S. Senate race in Georgia and led in another, moving closer to a surprise sweep in a former Republican stronghold that would give them control of Congress and the power to advance President-elect Joe Biden’s policy goals.
A final outcome is not expected until later on Wednesday.
Read more ....
WNU Editor: Everyone expected .... this blog included .... that a Democrat sweep in the Georgia Senate races will give us volatile markets, and we are seeing it today.
The expectation of a lot of "helicopter money" from the US government always does that to markets.
Great for Wall Street. Not so for main street.
And for the long term when all of this has to be accounted for .... everyone loses.
The question that still remains unanswered is .... when will that day of reckoning happen. Your guess is as good as mine. But I give it a year ... maybe two tops .... a prediction based on my experience/knowledge/and common sense.
Update: Here is a good analysis .... Here Are The Full "Blue Wave" Implications For Politics, Markets And The Economy (Zero Hedge).
0 Response to "U.S. Stock Markets Are Booming With The Prospect Of A Democrat Controlled US Government"
Post a Comment