Stock Market Today: U.S. Capitol Under Attack, Dow Sets New Highs Anyway
Stocks soared early Wednesday on the back of a Democratic sweep in Georgia's runoffs, then maintained some of their ground despite a violent pro-Trump attack in Washington.
U.S. stocks' ascent to new highs Wednesday came in bizarre and stunning contrast to what unfolded in Washington, D.C.
Earlier in the day, Democratic control of the Senate – a thin possibility just a couple of months ago – suddenly seemed likely after strong showings by the Rev. Raphael Warnock and Jon Ossoff in Tuesday's Georgia Senate runoffs (both were declared the winners of their respective races by Wednesday afternoon). Stocks responded with a sharp morning lift.
Meanwhile, in Washington, a last-minute attempt to keep Congress from accepting the presidential election results fizzled as Vice President Mike Pence demurred and Senate Majority Leader Mitch McConnell discouraged overturning the vote. But those proceedings were interrupted by a violent pro-Trump mob, who attacked federal police and breached the Capitol, which had to be put on lockdown.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The Dow Jones Industrial Average, which flirted with 31,000 momentarily, still finished with an 1.4% gain to a record 30,829, led by the likes of Caterpillar (CAT, +5.7%) and Dow Inc. (DOW, +4.8%). And the small-cap Russell 2000 vigorously overtook its old highs, ramping up 4.0% to finish at 2,057.
Other action in the stock market today:
- The S&P 500 finished 0.6% higher to 3,748.
- The Nasdaq Composite pulled back 0.6% to 12,740, despite yet another big gain by Tesla (TSLA, +2.8%).
- U.S. crude oil futures finished up another 1.1% to $50.63 per barrel.
- Gold futures sank by 2.3% to $1,908.60.
- Bitcoin prices, at roughly $34,000 yesterday, neared $36,000 on Tuesday. (Bitcoin prices reported here are as of 4 p.m. each trading day.)
Investing in the New Washington Landscape
President-Elect Joe Biden's policy proposals won't all be rubber-stamped, given a thin Senate majority (courtesy of the vice presidential tiebreaker), but the Senate swing does accelerate some investment trends that hinged on Democratic control of Washington.
"The growth-into-value rotation may be reinforced after the results of the Georgia Senate election amid the prospect of a higher fiscal stimulus bill and steeper yield curve, which would benefit banks and other non-tech companies," says David Bahnsen, chief investment officer of The Bahnsen Group.
Indeed, many of our top picks in financials, industrials and materials finished solidly higher Wednesday. Industries benefiting most from Democratic control, such as green energy and marijuana stocks, also enjoyed robust gains.
Amid the change in political tides, we've taken another look at – and added to – our list of stocks poised to gain from a new White House tenant. Read on as we explore 17 picks that could reap the benefits of various policies that might be put in place over the next few years.
Kyle Woodley was long Bitcoin as of this writing.
-
Dow Hits New High Then Falls 466 Points: Stock Market TodayThe Nasdaq Composite, with a little help from tech's friends, rises to within 300 points of its own new all-time high.
-
The Best Vanguard Bond Funds to BuyInvestors seeking the best Vanguard bond funds can pick between mutual funds and ETFs spanning maturities, credit qualities, tax treatment and geographies.
-
Are You Afraid of an IRS Audit? 8 Ways to Beat Tax Audit AnxietyTax Season Tax audit anxiety is like a wild beast. Here’s how you can help tame it.
-
Stocks Struggle for Gains to Start 2026: Stock Market TodayIt's not quite the end of the world as we know it, but Warren Buffett is no longer the CEO of Berkshire Hathaway.
-
If You'd Put $1,000 Into Lowe's Stock 20 Years Ago, Here's What You'd Have TodayLowe's stock has delivered disappointing returns recently, but it's been a great holding for truly patient investors.
-
Stocks Extend Losing Streak After Fed Minutes: Stock Market TodayThe Santa Claus Rally is officially at risk after the S&P 500's third straight loss.
-
If You'd Put $1,000 Into 3M Stock 20 Years Ago, Here's What You'd Have TodayMMM stock has been a pit of despair for truly long-term shareholders.
-
Santa Claus Rally at Risk as Tech Stocks Slump: Stock Market TodayThe Nasdaq Composite and Dow Jones Industrial Average led today's declines as investors took profits on high-flying tech stocks.
-
Nasdaq Sinks 418 Points as Tech Chills: Stock Market TodayInvestors, traders and speculators are growing cooler to the AI revolution as winter approaches.
-
If You'd Put $1,000 Into Coca-Cola Stock 20 Years Ago, Here's What You'd Have TodayEven with its reliable dividend growth and generous stock buybacks, Coca-Cola has underperformed the broad market in the long term.
-
If You Put $1,000 into Qualcomm Stock 20 Years Ago, Here's What You Would Have TodayQualcomm stock has been a big disappointment for truly long-term investors.
