Stock market: Wall Street at records after the swearing-in of Joe Biden

All eyes are on Washington for Joe Biden’s nomination (Photo: Getty Images)

MARKET REVIEW. The New York Stock Exchange hit new highs on Wednesday at the close after a session marked by the official start of Joe Biden’s tenure as President of the United States and a salvo of results.

The Toronto Stock Exchange also recorded gains, despite investor fears around a US protectionism plan on Joe Biden’s agenda.

The clues

In Toronto, the S&P/TSX ended the day up 57 points, or 0.32%, to 18,014 points, crossing the symbolic mark of 18,000 points.

In New York, the S&P 500 increased 52 points, or 1.39%, to 3,851 points.

The Dow Jones rose 257 points, or 0.83%, to 31,188 points.

The Nasdaq climbed 260 points, or 1.97%, to 13,457 points.

The context

The previous records for the three major indices dated from January 8.

With the new American administration, the market is anticipating an ambitious fiscal stimulus plan, as the new Democratic president has committed to, who wants to urgently release an additional $ 1,900 billion to deal with the impact of the pandemic.

These measures, supposed to boost consumption and investment, are viewed favorably by financial circles.

Such a prospect, defended the day before by the future Secretary of the Treasury, Janet Yellen, against US senators, had already supported Wall Street on Tuesday.

The New York Stock Exchange, and in particular the high-tech Nasdaq index, also benefited from the insolent form of Netflix, whose title jumped nearly 17%.

On Tuesday evening, the American online streaming giant revealed that its number of subscribers worldwide had for the first time surpassed 200 million at the end of last year, confirming the rise of the platform during the pandemic.

The group also indicated that it was considering a share buyback, a measure that tends to push up the price of a security listed on Wall Street.

The American investment bank Morgan Stanely (-0.20%) and the American group of consumer goods Procter & Gamble (-1.25%) released on Wednesday before the opening of the good results, but their respective stocks fell.

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