On Wednesday, all three key indices of Wall Street edged higher with trade-sensitive Dow leading the gains, as investors seemed to be looking beyond the pandemic-led trepidations, while market participants’ hope for a brighter 2021 following release of a $2.3 trillion fiscal package added to further optimism.
Apart from that, rollout of a second pandemic vaccine in UK alongside the likelihoods of further monetary support from the US Government, had ramped up investors’ appetite for riskier assets. Nonetheless, Wednesday’s gains in the Wall Street were mostly prompted by hopes of a $2,000 in one-off stimulus check ahead of a January 5 Georgia Senate election, results of which would determine whether the Republicans would hold on to their majority in the US Senate.
However, expectations of a bigger stimulus check in a near-term outlook was dampened on Tuesday after the US Senate Majority Leader, Mitch McConnel, a Republican, had blocked a quick vote to support the US President Donald Trump’s call for a hike in one-time pay-check to $2,000.
Instead, McConnel had introduced a stimulus bill that increased the one-time pay-check to $2,000, but had been tied with a removal of protections of social media companies alongside an investigation on election security.
inches higher on bigger stimulus hope ahead of Georgia Senate election
Citing statistics, in the day’s Wall Street closing bell, trade-sensitive Dow added 0.24 per cent to 30,409.56 and benchmark S&P 500 rose by 0.13 per cent to 3,732.04, while tech-heavy Nasdaq edged 0.15 per cent higher to round off the session at 12,870.
Meanwhile, adding that a larger stimulus check had been turned into a ruse in the state of play ahead of a January 5 Senate election in Georgia, a managing partner in a wealth management firm Keator Group in Lenox, Massachusetts, Matthew Keator, said, “Something’s better than nothing but there’s a lot of politics involved.
The market is anticipating something, whether $600 or $2,000 part of that is baked into the cake”.