Wall Street welcomed Joe Biden as President of the United States Wednesday with open arms, as U.S. stocks closed at record highs on the day Biden was sworn is as the 46th U.S. president.
Netflix helped set the tone for the market in general, as their great week continued on the news that their stock went up 16.85% after they announced their days of borrowing billions of dollars to fund their content production may be over.
Tech stocks in general set the tone for the record setting day, and according to an investment strategist, Netflix deserves most of the credit. “It’s a tech outperformance day which is pretty rare over the past two or three months as the cyclical rotation has kind of gotten underway,” said Ross Mayfield, investment strategy analyst at Baird.
“(Today was) just a reminder that the tech run had gotten extended… the FAANG names and some of the other S&P 500 tech names are still incredible operators and are going to be putting out incredible earnings quarters for the foreseeable future,” Mayfield said.
It wasn’t necessarily the political climate change on Wednesday that drove stocks to their record day, but more of the fact that Biden’s big, upcoming $1.9trillion stimulus package is going to pump a lot of cash into the economy.
Since Donald Trump entered the White House at the start of his presidency exactly four years ago, the Dow has gained 57% and the S&P 500 has grown almost 68%, so the markets are continuing what Trump’s leadership started.