Just one day after a violent mob of supporters of President Trump stormed the U.S. Capitol Building in an attempt to overturn the results of the presidential election and amid calls in Washington to remove Trump from office, U.S. stocks soared to all-time highs again on Thursdayâ€”seemingly unaffected by the chaos unfolding on Capitol Hill. Hereâ€™s why.Â
All three indices closed above previous records on Thursday, with the S&P 500 closing with gains of 1.5%, the Dow Jones industrial average up 0.7% and the tech-heavy Nasdaq up 2.5%.
They performed similarly on Wednesday, even though the market closed while Trump supporters were still present in the Capitol Building, because â€œinvestors for the last couple of weeks stopped doubting the transition,â€ said Vital Knowledge founder Adam Crisafulli.Â
Crisafulli added that markets on Wednesday were â€œfirmly focused on the implications of Dem control of the House, Senate, and White Houseâ€ as two Democratic Senators claimed victory in runoff elections in Georgia rather than the riot unfolding in the nationâ€™s capital.Â
Interactive Brokers chief strategist Steve Sosnick told the New York Times that the â€œdisturbingâ€ short term unrest in the Capitol â€œultimately doesnâ€™t really change the long-term picture.â€
“It was a horrible day for democracy, but was it a horrible day for capitalism?,â€ asked colorful tv markets commentator Jim Cramer Thursday of stocksâ€™ apparent insulation from the chaos in Washington.Â
Itâ€™s not unusual for stocks to brush off major protests and tragedies in the United States. Just this summer, the S&P 500 saw the best 50-day streak in its history during the massive protests and civil unrest in the aftermath of George Floydâ€™s death. The index added nearly 20% in 1963, the year President Kennedy was assassinated, and it soared a staggering 26% in 2003 after protests erupted all over the world in response to the Iraq war.Â