Stocks rallied on Wall Street Wednesday, sending the S&P 500 index up 2.2%, as investors embraced the upside of more gridlock in Washington. Technology stocks, which have proved impervious to the damage inflicted on other industries by the coronavirus pandemic, led the way higher, the AP reports. The Dow Jones Industrial Average rose 367.63 points, or 1.3%, to 27,847.66, per CNBC. At one point, it was up more than 800 points. The S&P 500 rose 74.42 points to 3,443.44 and the Nasdaq Composite jumped 3.9%, or 430.21 points, to 11,590.78. Analysts said the gains came as markets focused on the benefits of the country’s political control remaining split between Democrats and Republicans.
With Republicans edging closer to retaining control of the Senate, prospects dimmed for the tax increases and tighter regulations on businesses that investors expected if Democrats scored an electoral sweep. However, a big stimulus effort for the economy that some on Wall Street say is needed now also seems unlikely. "The first information that people are digesting is that a split government is OK, and we can deal with this," said Melda Mergen, deputy global head of equities at Columbia Threadneedle. "No big changes are expected anytime soon on the policy side." She cautioned, though, that the initial moves for the market may not last. "It’s a very quick reaction without knowing the final results," she said. "It's emotional rather than rational."
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