Dow Jones Rise to a Record High, Democrats Likely to Win in Georgia
Joe Biden and the Democrat Party are closing in on Georgia and look likely to win the Senate election runoff, a development that has seen the Dow Jones rise to a record high. This scampers the Republican Party's plans and gives full control of democrats to implement some of their ambitious policies like expanding the fiscal policy and issuing even larger stimulus packages, which will inevitably support the stock market, pumping leading indices, including the Dow in the process.
It has been an eventful three months in the United States. Their acrimonious politics and see-sawing is forcing the markets on their toes as analysts closely train their eyes on these proceedings. If Democrats win, the deputy president-elect, Kamala Harris, will cast the tie-breaking vote giving control to Democratic Party, a pass to inject even more money into a stuttering economy, risking hyperinflation after controlling both chambers of Congress and the White House. Still, some analysts say even if the stimulus checks are increased to $2k, the Federal Reserve might step in and tighten by increasing interest rates in the next few quarters as the US economy recovers after the pummeling of 2020.
Impact on the Dow:
Bullish. Elections results might take a few more days before confirmation. Still, if democrats are leading, stocks and indices will likely post gains in the immediate term.
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