Despite DC Chaos, Stocks Rally on Hopes of Senate Turnover

Investors are shifting away from big tech stocks
By Newser Editors and Wire Services
Posted Jan 6, 2021 3:48 PM CST
Despite DC Chaos, Stocks Rally on Hopes of Senate Turnover
FILE - In this Nov. 5, 2020 file photo, a sign for Wall Street is carved in the side of a building. Stocks rose on Wall Street, Wednesday, Dec. 30, putting the market back on a positive footing following a modest pullback the day before.   (AP Photo/Mark Lennihan, File)

Wall Street rallied Wednesday on expectations of more stimulus for the economy, the AP reports, although the enthusiasm was dampened by chaotic scenes in Washington as pro-Trump protesters stormed the US Capitol. The S&P 500 rose 0.6%, giving up much of an earlier rally, while the Dow Jones Industrial Average closed at a record high. Small-company stocks did especially well as investors ploughed money into businesses that would be winners if Democrats can pump even more financial stimulus into the economy amid rising expectations that the GOP may lose control of Washington. The Dow Jones Industrial Average jumped 437.80 points, or 1.44%, to 30,892.40.

The rally lost some momentum in the afternoon after the US Capitol building went into lockdown as Trump supporters broke through barricades and entered the building following clashes with police. Most stocks were still higher after Democrat Raphael Warnock won one of the two runoff elections in Georgia that will determine which party controls the Senate. Outlets called the second race for Democrat Jon Ossoff on Wednesday afternoon. Big Tech stocks are also in the spotlight as investors shift away from the winners of the stay-at-home economy of the pandemic and rotate into companies whose profits would benefit most from a healthier economy. The Nasdaq composite, which is full of tech stocks, struggled for much of the morning and was flat after shedding modest early gains.

(Read more stock market stories.)

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