Joe Biden was sworn in as the 46th president of the United States on Wednesday in a smaller, sparser inauguration ceremony than in years past, but one that was no less cheered by investors, who drove the blue-chip indices to fresh highs.
Biden's message was a welcome one, touting unity as a solution to the hurdles facing America:
"This is our historic moment of crisis and challenge. And unity is the path forward," he said. "We have never, ever, ever, ever failed in America when we've acted together."
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.
Wall Street, of course, is more focused on policy than speeches, and is now keying in on the perceived benefits of the new president's stimulus proposal. (Treasury Secretary Nominee Janet Yellen endorsed Biden's plan yesterday.)
The Dow Jones Industrial Average, up 0.8% to 31,188, finished with a record close. Strong performances from the "FAANGs" – Facebook (FB, +2.4%), Amazon.com (AMZN, +4.6%), Apple (AAPL, +3.3%), Netflix (NFLX, +16.9%) and Google parent Alphabet (GOOGL, +5.4%) – launched the S&P 500 (+1.4% to 3,851) and Nasdaq (+2.0% to 13,457) to new heights.
Netflix's outsized jump was fueled by a strong fourth-quarter report that saw the streaming video provider pass 200 million global subscribers.
"We feel the company's robust original content pipeline and improving cash flow leave it well-positioned to remain consumers' top choice in streaming entertainment for years to come," say Canaccord Genuity analysts Maria Ripps and Michael Graham, who rate the stock Buy and raised their 12-month price target from $630 per share to $670.
The small-cap Russell 2000 joined in, climbing 0.4% to a record 2,160.
Other action in the stock market today:
- Gold futures surged 1.4% higher to hit $1,866.50 per ounce.
- U.S. crude oil futures settled 0.5% higher, at $53.24 per barrel.
- Bitcoin prices, at $36,433 on Tuesday, declined by 3.9% to $35,007. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m. each trading day.)
How Long Will the Market Honeymoon Last?
Investors are sure to continue betting on industries and sectors most likely to get a lift from the nation's change in management. Green energy stocks have been all the rage, for instance, and could continue to receive a bid.
Don't count out traditional energy plays, however. Erin Swenlin, senior analyst at Stockcharts.com, points out that "with the possible crackdown on fracking and fossil fuels by the new administration, scarcity will afford the oil and natural gas industries more gains."
But like some of her peers, Swenlin is warning about potential short-term overheating.
"We're seeing a market that is more than overbought. ... it is running well past earnings potential," she says, warning of a looming correction – one that could occur "when investors realize that the vaccine hasn't solved our economic problems."
That could be a blessing in disguise, at least for new money.
Many "Biden picks" have already appreciated considerably since we first highlighted them ahead of the November election, and a correction could produce more palatable pricetags for a number of stocks that should have Washington on their side for at least a couple years to come. If you want to build such a watch list, look no further than this list of 20 top stocks for the Biden administration.
Kyle Woodley was long AMZN and Bitcoin as of this writing.
-
Stocks Keep Climbing as Fed Meeting Nears: Stock Market TodayA stale inflation report and improving consumer sentiment did little to shift expectations for a rate cut next week.
-
Your End of Year Insurance Coverage Review ChecklistStop paying for insurance you don't need and close coverage gaps you didn't know about with this year-end insurance review.
-
Crypto Trends to Watch in 2026Cryptocurrency is still less than 20 years old, but it remains a fast-moving (and also maturing) market. Here are the crypto trends to watch for in 2026.
-
Stocks Keep Climbing as Fed Meeting Nears: Stock Market Today
A stale inflation report and improving consumer sentiment did little to shift expectations for a rate cut next week.
-
Crypto Trends to Watch in 2026
Cryptocurrency is still less than 20 years old, but it remains a fast-moving (and also maturing) market. Here are the crypto trends to watch for in 2026.
-
Small Caps Hit a New High on Rate-Cut Hope: Stock Market TodayOdds for a December rate cut remain high after the latest batch of jobs data, which helped the Russell 2000 outperform today.
-
UNH Sparks a 408-Point Surge for the Dow: Stock Market TodayThe best available data right now confirm both a slowing employment market and a December rate cut, a tension reflected at the equity index level.
-
Stocks Bounce Back With Tech-Led Gains: Stock Market TodayEarnings and guidance from tech stocks and an old-school industrial lifted all three main U.S. equity indexes back into positive territory.
-
Dow Slides 427 Points to Open December: Stock Market TodayThe final month of 2025 begins on a negative note after stocks ended November with a startling rally.
-
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.
