S&P 500, Dow Jones Expansion Coincides with President Trump Impeachment
The House of Representatives impeached President Trump, making him the first in history to be canceled twice. This coincided with the expansion of Dow Jones and the S&P 500--leading indices often used to gauge the health of the economy and the stock market's status. The revival in the stock market follows investors' confidence in Joe Biden's stimulus to jump-start an economy struggling with recent data showing a weak labor market. Data from the Labor Department revealed that more people than expected are in distress, filing for unemployment benefits highlighting the coronavirus's effects and the need to distribute vaccines faster.
President Trump winning could have meant lower stimulus packages and further tightening, decisions that might have worsened the situation. The economy, apparently, needs aid. Joe Biden, supporters claim, has the right prescription--that of injecting billions of dollars in the next few years, expanding the country's fiscal policy and increasing individual stimulus checks to $2k. This means more free-floating money and better purchasing power, just what the stock market needs and a primer for lubing the economy that's faced with headwinds.
Impact on Indices:
Bullish. Investor confidence in Joe's policy and COVID-19 vaccine could be why the stock market and indices rally might continue in the medium term, overriding the fact that the labor market is deteriorating as coronavirus infection count also rises in some states.
More market news over on ourBlog