Stock Market Today: Wall Street Welcomes Biden With Resounding Rally
The major indices finished at record highs Wednesday as investors digested the new president's inauguration message and hopes for his stimulus plan.


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."

Sign up for Kiplinger’s Free E-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.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Kyle Woodley is the Editor-in-Chief of WealthUp, a site dedicated to improving the personal finances and financial literacy of people of all ages. He also writes the weekly The Weekend Tea newsletter, which covers both news and analysis about spending, saving, investing, the economy and more.
Kyle was previously the Senior Investing Editor for Kiplinger.com, and the Managing Editor for InvestorPlace.com before that. His work has appeared in several outlets, including Yahoo! Finance, MSN Money, Barchart, The Globe & Mail and the Nasdaq. He also has appeared as a guest on Fox Business Network and Money Radio, among other shows and podcasts, and he has been quoted in several outlets, including MarketWatch, Vice and Univision. He is a proud graduate of The Ohio State University, where he earned a BA in journalism.
You can check out his thoughts on the markets (and more) at @KyleWoodley.
-
Do You Really Need That Wine Cellar?
Home Features Wine cellars are a popular feature in high-end houses. Will installing one in your home increase its value, or would you be better off with a cheaper solution?
-
Think a Repeal of the Estate Tax Wouldn't Affect You? Wrong
The wording of any law that repeals or otherwise changes the federal estate tax could have an impact on all of us. Here's what you need to know, courtesy of an estate planning and tax attorney.
-
My Three-Day Rule for Investing: And If it Applies Now
Stock Market I've seen a lot in my career. Here's what I see now in the stock market.
-
Is It Time to Invest in Europe?
Stock Market Europe is being shaken out of its lethargy, militarily and otherwise, by Donald Trump's changes in U.S. policy. Should investors start buying?
-
Stock Market Today: Dow Gains 1,160 Points on U.S.-China Trade Deal
The two countries agreed to a 90-day truce that will give them time to work on more substantive trade negotiations.
-
Stock Market Today: S&P 500, Dow Snap Win Streaks
Berkshire Hathaway shares tumbled after Warren Buffett said he'll step down as CEO of the holding company at the end of the year.
-
Stock Market Today: S&P 500 Nabs Longest Win Streak Since 2004
The stock market's rebound from its mid-April tariff-induced lows has been nothing short of impressive.
-
Stock Market Today: Dow, S&P 500 Extend Win Streaks to 8
Strong earnings results for Magnificent 7 stocks Microsoft and Meta fueled upside in the equities market.
-
AI vs the Stock Market: How Did Value Stocks, Gold and PayPal Perform in April?
AI is a new tool for investors to use for data analysis, but can it beat the stock market? Here's how a chatbot's stock picks fared in April.
-
Stock Market Today: Great Power Affairs Mesmerize Markets
The U.S. and China are at least talking about talking about tariffs, and investors, traders and speculators are showing a little less fear.