Dow closes at record as Democratic Senate win and stimulus expectations offset Capitol chaos

Dow closes at record as Democratic Senate win and stimulus expectations offset Capitol chaos

January 6, 2021

Bill Clark/CQ-Roll Call, Inc via Getty Images

  • The Dow Jones Industrial Average closed at record highs on Wednesday as the prospect for more stimulus under a Democratic controlled Senate offset chaos at the US Capitol.
  • Supporters of President Trump stormed the US Capitol building after his speech at the “Stop The Steal” rally as Congress was in session to certify the 2020 Presidential election.
  • Watch major indexes update live here.

The Dow Jones Industrial Average closed at record highs on Wednesday even as President Trump supporters stormed the US Capitol in Washington, D.C.

Stocks marched higher throughout the day on Wednesday following the Tuesday election results of two Georgia Senate run-off elections, with Democratic candidates Raphael Warnock and Jon Ossoff edging out Republican candidates Kelly Loeffler and David Perdue.

Investors likely bid up stocks as Democratic control of the Senate increases the likelihood of increased stimulus and infrastructure spending in the coming months.

Here’s where US indexes stood at the 4:00 p.m. ET close on Wednesday:

  • S&P 500: 3,748.14, up 0.57%
  • Dow Jones industrial average: 30,829.40, up 1.44% (437.80 points)
  • Nasdaq composite: 12,740.79, down 0.61%

Read more: Buy these 30 stocks that handily beat the market in 2020 and are poised for the best global returns in 2021, RBC says

The results of the Georgia election sent shockwaves across the market, with technology stocks leading the market lower. Wedbush analyst Daniel Ives chalked up the decline to the increasing likelihood of antitrust legislation under a Democratic-controlled Congress.

Solar stocks soared on the increased likelihood that Biden’s green energy agenda is passed under a Democratic controlled Congress.

Bitcoin surged above $35,000 to an all-time high as investors sought an inflation hedge against the likelihood of increased government spending under the Biden administration.

US private-sector employment shrank in December for the first time in eight months, with 123,000 payrolls lost, ADP said.

The 10-year US Treasury yield topped 1% for the first time since March.

Oil prices rose. West Texas Intermediate crude jumped 0.94%, to $50.40 per barrel. Brent crude, oil’s international benchmark, gained 0.86%, to $54.06 per barrel.

Gold fell as much as 1.81%, to $1,910.00 per ounce.

Read more: The space industry will grow by over $1 trillion in the next decade, says Bank of America. Here are the 14 stocks best-positioned to benefit from the boom.

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