The S&P 500, Dow and Nasdaq closed with strong gains on Wednesday as investors anticipate a positive impact from the $ 1.9 trillion US economic aid program. Biden’s candidate for Treasury Secretary Janet Yellen has called on Congress to approve the spending program.
Major US stock indexes closed at a record high on Wednesday, the day of the inauguration of Joe Biden, who became the 46th President of the United States. The Dow Jones rose 0.83%, the S&P 500 added 1.39% and the Nasdaq Composite rose 1.97%, thanks in part to a strong jump in Netflix (NFLX) stocks of 17% amid strong financials.
Analysts noted that financial markets were hoping for a quicker exit from the recession for the American economy as the Biden administration prepares to increase government aid with a $ 1.9 trillion program that includes increased direct payments to the population, the unemployed, higher health care costs and more. … Read more about Biden’s plan in Marketinfo.pro article “Biden Calls for $ 1.9 Trillion. to help the economy and defeat the pandemic. “
Biden also ordered a stricter mask-wearing regime across the country in the next 100 days, during which 100 million Americans are to receive the COVID-19 vaccine.
Reporters noted that Joe Biden used the word “democracy” more often in his inaugural speech than any other US president.
Biden’s inauguration was preceded by the scandalous departure of his predecessor, Donald Trump, who unjustifiably claimed election fraud and provoked his supporters to storm the Capitol, which killed five people.
Trump is currently under threat of impeachment, which must be considered in Congress, after the House of Representatives voted in favor of the measure.
“This is America’s day. This is a day of democracy, ”Biden said in his inaugural speech. “A day of history and hope, renewal and determination. America was retested and America rose to the challenge. “
Biden’s Treasury nominee, former Federal Reserve Chairman Janet Yellen, spoke to the Senate Finance Committee on Tuesday urging lawmakers to do more to lift the U.S. economy out of the recession caused by the coronavirus pandemic. On Thursday, the Senate is due to vote to confirm Yellen as Treasury Secretary.
Compared to her predecessor, Yellen said she will pursue a more socially oriented policy, as she believes that helping the unemployed and small businesses will bring “the greatest return on investment.”
Chris Larkin, managing director of trade and investment products at E-Trade, said the market is now more focused on the prospects for stimulating economic growth.
“Calls for an impending correction in the market have subsided, and we see a pretty good start to the reporting season: Netflix is signaling free cash flow, and large banks have more or less exceeded expectations.
What is even more encouraging is the positive forecasts the companies are making. So despite some inevitable bumps in the road, traders and corporate America are starting to see the light at the end of the tunnel, ”he added.
On his first day in office, Joe Biden overturned a number of Trump decrees, signing an executive order for the United States to return to cooperation with the World Health Organization and acceding to the Paris Agreement on climate change, and also lifted the so-called Muslim travel ban and the construction of the southern border wall.
Biden also advocated extending the moratorium on evictions and foreclosures, and extending the pause in interest payments on student direct federal loans until at least September 30.
A number of world leaders have greeted US President Joe Biden and Vice President Kamala Harris, welcoming their foreign policy agenda and commitment to joining the fight against climate change.