On Wednesday, President Donald Trump became the first U.S. President in history to be impeached twice. All House Democrats and ten Republicans voted to impeach the President for incitement of deadly riots at the Capitol last week.
It’s one of the most significant political events ever, yet it has barely shaken the stock market. Stocks were up on Wednesday with the most important indexes posting gains, continuing one of the most impressive periods of growth in modern history.
How the Market Performed Yesterday
On the day of Trump’s historic second impeachment, the major indexes performed as follows…
- The NASDAQ Composite (COMP) was up by 0.43% at closing.
- The S&P 500 (SPX) was up by 0.23% at closing.
- The Dow Jones Industrial Average (DJIA) was the only major outlier, sliding 0.03% at closing.
The results reflect a continued trend of investors remaining largely indifferent to the political turmoil that has been seen in Washington. President Trump is on his way out of office, and an impeachment, even if it reaches a trial in the Senate, won’t change that fact.
Joe Biden, who investors have been largely positive about, will be inaugurated on January 20th. This leaves just a week left in the transition. Investors seem to feel that regardless of the heated rhetoric of today, some form of stability is incoming.
Coronavirus Cases Aren’t Rattling Investors
The political situation isn’t the only headwind that investors have largely ignored.
America is now facing its worst period yet in the ongoing Coronavirus Pandemic. A newer fast-spreading strain of the virus has been detected in the states. A total of more than 22.2 million infections has been confirmed. The death toll hit 386,842 yesterday, a daily increase of 3,552.
The virus is far from under control, but Trump, through the White House, has offered some hope of relief. His administration has advised states to stop withholding doses and to vaccinate as many people as possible. States were previously withholding to avoid shortages for the necessary second vaccine per person. The White House has now advised to distribute now and restock later.
Is It Time to Be Bullish?
Considering all of the headlines, it doesn’t look like a time to be bullish, but that’s exactly what the market is doing. Investors are betting that gradual economic recovery will support the market. According to index performance, they’re right for the time being.
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