NEW YORK/ LONDON/SYDNEY – Investors are looking ahead to the next US administration after Democrats won control of Congress on Wednesday, a political shift that could strengthen the hand of President-elect Joe Biden in pushing through policies such as more fiscal spending and higher taxes.
Reports of the attacks on the US Capitol briefly shook markets, but investors said the impact would be temporary at best.
After four years of a low-tax regime that has helped buoy stocks, some investors were concerned that a Democraticcontrolled Congress – seen as paving the way for tax hikes and other potentially market unfriendly policies – could weigh on markets.
Those worries appeared muted on Wednesday, as both the Dow and S&P 500 hit record highs.
The aftermath of the runoff elections in the state of Georgia weighed on technology stocks while sending investors into sectors that under performed last year, such as banks and sma l l caps.