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(Bloomberg) — Stocks rallied toward a record a day after violence rocked the U.S. Capitol, with investors firmly focused on the prospect for more economic stimulus and the likelihood that calm will prevail as Joe Biden takes the presidency.


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Nearly 80% of the companies in the S&P 500 rose, with technology and financial shares leading gains. The Nasdaq 100 climbed more than 2%, while the Russell 2000 Index of small caps extended a three-day advance to almost 8%. Tesla Inc. surged after RBC Capital Markets upgraded the stock, noting that it was “completely wrong” with a previous bearish view. Another notable call came from Goldman Sachs Group Inc., which said banks have “moved back into vogue” due to optimism about fiscal aid, rising interest rates and bigger capital returns. Treasury yields held above 1%.

Democrats are set to take control of the Senate, House and presidency, paving the way for Biden to bring his legislative agenda to life and reshape the economy. He was recognized by Congress as the next president following a day of violence at the U.S. Capitol when pro-Donald Trump demonstrators breached police lines and entered the building. While campaigning in Georgia before the runoff elections, Biden vowed that $2,000 stimulus checks would be sent out “immediately” if Democrats won the state.

graphical user interface, chart: Stocks rally toward record © Bloomberg Stocks rally toward record

“Markets (rightly, in our view) see the U.S. government as ultimately a stable-enough set of institutions even if things occasionally go pear-shaped,” Nick Colas, co-founder of DataTrek Research, wrote in a note to clients. “Politics play second fiddle to economic and corporate fundamentals when it comes to setting asset prices. The country’s economic future coming out of the pandemic remains promising.”

Read: Quants Ditch Treasuries Amid Battle Over How High Yields Can Go

In economic news, growth at U.S. service providers unexpectedly accelerated as gains in business activity and new orders helped offset a decline in a measure of employment. Friday’s jobs report is forecast to show a sharp slowdown in hiring.

Elsewhere, the total market value of cryptocurrencies surpassed $1 trillion for the first time amid a rally in Bitcoin, which topped $39,000 and hit another record.

These are some of the main moves in markets:


The S&P 500 climbed 1.5% as of 11:37 a.m. New York time.The Stoxx Europe 600 Index gained 0.6%.The MSCI Asia Pacific Index rose 0.7%.


The Bloomberg Dollar Spot Index increased 0.5%.The euro fell 0.4% to $1.2275.The Japanese yen depreciated 0.7% to 103.78 per dollar.


The yield on 10-year Treasuries rose four basis points to 1.08%.Germany’s 10-year yield climbed one basis point to -0.51%.Britain’s 10-year yield jumped five basis points to 0.291%.


West Texas Intermediate crude rose 0.7% to $50.96 a barrel.Gold lost 0.2% to $1,913.92 an ounce.

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