Wednesday Stock Market Update
The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite surged on Wednesday.
- The Dow Jones Industrial Average surged 437.80 or 1.44 percent, to close at 30,391.60.
- The S&P 500 gained 0.57 percent to close at 3,748.14.
- The Nasdaq Composite fell 0.61 percent to close at 12,740.49.
Stocks rose as investors analyzed the impact of a Democratic sweep in Georgia The Dow closed at a record high, while the Nasdaq fell.
"It looks like Democrats are poised to pick-up two additional Senate seats, throwing them control of the Senate. We’d resist the temptation that sweeping changes are in the offing, given the razor thin majorities the Democrats now have,” Neil Dutta, Renaissance Macro Research's head of U.S. economics, said “Still, it is likely that additional COVID relief is coming. Democrats in Georgia had a simple message: $2,000 checks to households.”
“2021 GDP estimates, currently at just 4%, will continue to rise; the right tail is likely to come up as additional fiscal relief comes into play,” he added. “The Fed will resist changing its current policy guidance and will accommodate the improvement in the economy – passive easing. This should lift inflation expectations, help steepen the yield curve, and provide a tailwind to U.S. banks.”
On Thursday keep an eye out for:
- ISM Services PMI
- Initial Jobless Claims