Political unrest in Washington didn’t dent the stock market’s ongoing rally Thursday, with U.S. stocks climbing toward fresh records.
Financial and technology stocks led Thursday’s gains, pushing the S&P 500 up 1.5% and putting the broad index on pace to close at its first record of 2021. The Dow Jones Industrial Average also rose, adding 338 points to 31168.83, while the Nasdaq Composite jumped 2.1%, putting both of those benchmarks on track for new closing highs as well.
Investors largely looked past Wednesday’s violent clash between pro-Trump protesters and law enforcement in the Capitol building that left four people dead, instead focusing on what the shift of political power from Republicans to Democrats means for the market, analysts said.
“It’s not going to affect the transition of power, and as long as that is the case, I think investors will ignore it,” said Edward Smith, head of asset allocation research at U.K. investment firm Rathbone Brothers.
The prospect of additional fiscal stimulus has again rose to the forefront of investors’ minds after Democrats won control of the Senate by flipping two Republican seats in Georgia. A joint session of Congress early Thursday morning also affirmed Mr. Biden’s defeat of President Trump, who committed to an orderly transition of power.