With former Vice President Joe Biden now projected to be the President-elect, traders were able to put the election behind them and focus on future policy potential. For many, this meant the potential for more stimulus and government spending, while the stalemated Congress would likely work to keep regulations away. This sent the market higher throughout the week.
Also benefiting the market and potential economic growth was news on the coronavirus front. While the number of cases has exploded in recent weeks, news hit the press wires that a variety of vaccines and treatments were all approved by the FDA this week. As a result, the news canceled out much of the negatives from the recent surge in COVID-19 cases.
Earnings continued to roll in as well. And for the most part, they seemed positive. The continued mix of “haves” and “have nots” persisted this week as traders flocked to stocks making the right moves and successfully handling the pandemic. The week’s earnings highlighted this relationship once again.
Elsewhere, economic data seemed to support a stronger economy. From consumer measures to industrial activity, the week’s data showed a growing economy. This, coupled with the recent vaccine news and Biden’s presidential win, sent the markets higher throughout the week.
Be sure to check out our previous Wrap here, when stocks were hit with election drama.
