Good news this time came from the main Wall Street indexes which closed at new record highs at the end of trading Wednesday. This new record was printed when Joe Biden was sworn in as the 46th president of the United States. Meanwhile, Netflix sparked a rally in the shares of beneficiaries of the stay at home order.
The Nasdaq index led the way with a gain of nearly 2% to 13,457.25. While the Dow Jones rose 0.83% to 31,188.38, the S&P 500 index shot up 1.39% to 3,651.85.
Biden’s planned US $ 1.9 trillion fiscal stimulus will trigger the strengthening of Wall Street. With this stimulus, it is hoped that the US economy can rise faster, as well as the response to Covid-19.
“The other issue could be backwards defeated by the event in Washington because investors are looking for major policy changes going forward and the outlook for a new government,” said TD Ameritrade Chief Market Planner JJ Kinahan to CNBC International.
Biden’s Stimulus to US Citizens
Biden’s stimulus proposal includes direct cash assistance (BLT) worth US $ 1,400 to US citizens. And extended unemployment benefits and assistance to state and local governments. Likewise with the pandemic response fund and vaccination program.
From the trading floor, good earnings reports from several listed companies also lifted sentiment from market players. Netflix’s share price soared nearly 17% after the company reported strong customer growth. And said it would consider buying back its shares in the market.
The company got the pandemic’s blessing by printing 8.5 million subscribers, or accelerating compared to analysts’ anticipation of 6.47 million people.
Morgan Stanley shares rose in early trading after the announcement of the company’s financial performance for the fourth quarter of 2020 which exceeded market estimates, but at the close of trading it was even corrected 0.2%.
Likewise, Procter & Gamble shares fell 1.3% despite reporting an increase in revenue thanks to their sanitation products amid the pandemic.
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