Dow Jones Closes at Record amid an Invasion of Congress
The stock market remains undeterred while mobs storm through Washington.
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- Mobs storm through Washington
- The stock market remains undeterred by recent events
On Wednesday a pro-Trump mob invaded the halls of the US Capitol after breaking through barricades and police lines during the official certification of President-elect Joe Biden’s win. The unprecedented interruption brought the process to a halt. Violent clashes, federal property destruction, gunshots, and four people killed created fears about the resilience of American political institutions and led many to ask whether President Trump is fit to remain in office or should be impeached before his term ends in two weeks.
In the last two months, President Donald Trump has been repeatedly refusing to accept the loss and concede the election to President-elect Joe Biden. “We will never concede the election” Trump said in one of his recent conferences. In the same speech, he assailed congressional Republicans planning to ratify President-elect Joe Biden’s victory on Wednesday. Mr. Trump has used inciteful language on other occasions too. “You’ll never take back our country with weakness,” Mr. Trump said at Wednesday’s rally in Washington. “You have to show strength.”
Following the initial moments of the incursion into Congress, President Trump posted a video on Twitter and Facebook, in which he said he won the election in a “landslide”, while also thanking his supporters and urging them to “go home”. Both social media platforms blocked President Donald Trump’s accounts and removed the two posts. President-elect Biden stated that the US democracy was under “unprecedented assault” and called on Trump to “end the siege”.
After the area was cleared and the Capitol complex was secured, Republicans and Democrats resumed the certification process on Wednesday night. The mayor of the US capital, Muriel Bowser, instituted a curfew between 6 pm on Wednesday and 6 am on Thursday in an attempt to guarantee public order
A Positive Outlook Still Prevails
Amid the violence, the stock market surged to a record high on Wednesday as investors showed little reaction to the US Capitol being stormed by the angry mob. The Dow Jones Industrial Average was lifted to a record close at 30,829 points, an intraday climb of 1.44% or 437.80 points. The S&P500 also saw positive momentum, closing at 3,748 points, up 0.57% or 21.28 points. The DJIA briefly surpassed the 31,000 marks, indicating investor’s faith in a Biden presidency that will help the US economy through more stimulus aid and green programs.
The social and political turmoil presently unfolding appears to carry no significant value in the eyes of investors as it does not particularly change the near-term political or economic outlook. The market is already pricing the transfer of power and the implementation of the legislative agenda of President-elect Joe Biden and his cabinet. Additionally, the Democratic sweep that was confirmed yesterday will give the party control of the Senate once Mr. Biden is inaugurated on Jan 20. Democrats also have control of the House, essentially making way for Mr. Biden’s plans and policies to be implemented.
US equity futures point to a green open in the pre-market hours before the opening of the session on Thursday. Dow Jones futures are positive by about 0.50%, while S&P futures are up around 0.60%. Nasdaq futures indicate a higher open by nearly 1.00%.