- US stocks on Friday were set to reach record highs yet again as futures prices rose following President Donald Trump’s acknowledgment that Joe Biden would become president in less than two weeks.
- Democrats have pledged to launch more economic coronavirus relief, sending stocks across the board higher in a broad-based rally.
- The yields on longer-dated US Treasurys continued to rise as the market anticipated higher issuance and stronger growth and inflation.
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US stocks were set to continue their remarkable rally at the opening bell Friday, as indicated by futures prices, after President Donald Trump conceded defeat in the 2020 election and as investors positioned for more economic relief from President-elect Joe Biden and a Democratic-controlled Congress.
Traders continued to sell government bonds and move into stocks, pushing shares higher in Asia but gold lower. Chinese shares ended a six-day winning streak amid fresh tensions with the US, however.
Investors have piled into stocks in recent days with the vaccine rollout expanding and with Democrats taking control of the US Senate via two runoff victories in Georgia.
Even unprecedented scenes of pro-Trump rioters storming the US Capitol could not deter the rally, which has sent the S&P 500, the Dow Jones Industrial Average, the Nasdaq, and the Russell 2000 indexes to all-time highs.
“So much for a slow start to the new year,” said Han Tan, a market analyst at the trading platform FXTM.
“From a pair of tense Senate runoffs, to a mob breaching Capitol Hill and even a shock oil supply cut from Saudi Arabia, global investors have had plenty to take in this week. Yet, the buying momentum in stocks has continued unabated.”
The major factor driving stocks upward has been the Democratic sweep of the White House, the Senate and the House of Representatives. But Trump’s concession and promise of a “smooth, orderly, and seamless transition of power” in a video Thursday night have also calmed nerves.
Biden and his Democratic allies in Congress plan to launch a bigger round of economic coronavirus relief and also focus on infrastructure and low-carbon initiatives over the longer term. As part of the stimulus, the president-elect pledged during the Georgia runoff campaigns to get $2,000 direct payments to Americans “out the door immediately” should the two Democrats win their runoffs.
The rally in US stocks has been broad-based. Climate-friendly companies have profited. Tesla, for example, soared 7.94% on Thursday, making Elon Musk the world’s richest person….
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