That’s why Wall Street ignored most of the chaos in Washington

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Still, if you only looked at the performance of the stock market, it was a good day. He Dow (NOT SOLD) closed with a new all-time high and surpassed 31,000 points for the first time in its history. The wider S&P 500 (SPX) also ended up higher, like the Nasdaq Composite (COMP) closed in red.

Simply put: investors don’t really look at what’s going on right now. They look to the future and what it can bring to the companies in which they invest or to the economy in general.

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

While democratic control of the House, Senate and White House could mean tax increases in the future, investors opted to look on the bright side: more government aid during the crisis.

Biden has also promised large investments in infrastructure and clean energy, all aimed at creating millions of jobs. This helped increase stocks in the industrial and material sectors. Banks and financial companies also rose to the prospects of higher interest rates in the future, which translates into higher profits for their credit companies. Technology companies facing the prospect of more regulation and scrutiny, he felt a little pain.

That’s why, despite the unprecedented chaos at the Capitol, Wall Street remained mostly optimistic, even after stocks went out of the afternoon highs.

America has overcome civil unrest before. Wall Street bets it will too this time.

Again, it is possible that the market will also check the reality on Thursday and sell. After all, there is an ongoing pandemic, and a worsening of the number of infections has led to stricter rules in several states. But again, investors are likely to have a long-term vision: the next administration is expected to deliver on its promises to act forcefully to help U.S. companies and workers regain strength.

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