Wall St. rises on hopes of Democrat-led US Senate; pro-Trump protests check gains

by   |  VIEW 465

Wall St. rises on hopes of Democrat-led US Senate; pro-Trump protests check gains

On Wednesday, a slew of US stocks had winded up the day sharply higher with Dow and S&P 500 surging to their record closing highs as investors appeared to be heavily betting on financials alongside industrial stocks after twin victories in US Senate run-offs in Georgia, though pro-Trump protestors latest move to take on the capitol had kept a lid on the gains.

In point of fact, Wall Street opened up the day in a downbeat tone after pro-Trump protestors had stormed the US Capitol, while indices faltered further after Trump’s supporters had broken off the Offices and lawmakers had to be evacuated under police protection.

Nonetheless, in an abrupt turn of event, at the late-afternoon trading session, Wall Street pared all of its earlier losses and winded down the session with robust gains after twin victories in the US Senate run-offs in Georgia which in effect secured a unified control for the Democrats in both chambers of US Congress for the first time since 2009, stoking hopes of an earlier-than-anticipated pandemic stimulus alongside a number of sweeping reforms including an overhaul of corporate tax-incentives adopted earlier in 2017.

US Stocks eke out gains as Democrats sweep clears way for larger stimulus

Apart from that, a slew of US stocks received further bullish wing late in the day after the likely US Senate Majority Leader, New York Senator Schumer was quoted saying that the top priority for US Senate would be to raise a one-off stimulus pay-check to $2,000 from an earlier $600 passed later last month.

Meanwhile, rate-sensitive stocks of large lenders rose and financials hit a session-high of one-year peak, while benchmark 10-year US Treasury yield soared above 1 per cent. Citing statistics, in the day’s Wall Street closing bell, the trade-sensitive Dow climbed 1.44 per cent to a record closing high of 30,829.4 and benchmark S&P 500 added 0.57 per cent to 3,748.14, while tech-heavy Nasdaq was nudged 0.61 per cent lower to 12,740.79 following the US President Donald Trump’s executive order to ban US transactions for eight Chinese app developers including Alipay.

On top of that, a media headline released late in the day saying that the Trump Administration had been mulling an option to delist securities of Alibaba and Tencent Holdings from NYSE had ratcheted up the concerns further.

Concomitantly, voicing a cautiously optimistic tone, a Chief Investment Strategist at Inverness Counsel in New York, Tim Ghriskey said, “It hasn’t been a sharp market drop. There have been buyers coming in as well. This is a bit shocking visually to see this unfold on television.