The Dow Jones reportedly soared 545 points one day after the midterm elections.
Amid the many losers still licking their Election Night wounds was one clear winner celebrating on Wednesday — Wall Street.
Despite the impending political gridlock that will arise from a Republican-controlled Senate and Democratic Party-controlled House, the Dow Jones Industrial Average soared 545 points the day after Election Day.
Health-care stocks experienced healthy value bumps after California voters shot down a ballot measure that would have capped profits on dialysis services.
Also on the rise were energy stocks following a Colorado ballot rejection that would have limited new oil gas drilling in the state.
The profitable Wednesday for many investors is a sign that no serious business impediments are likely to be erected between now and 2020, Personal Capital chief investment officer Craig Birk told MarketWatch.
“The market appreciates the relative certainty of the slow legislative agenda,” explained Birk. “(But) the knee-jerk reaction to political events often turn out to be wrong.”
Another financial strategist, Dec Mullarkey of Sun Life Investment Management, believed a gridlocked Congress will stymie potential President Trump agenda victories which will make him more likely to focus on his broad executive powers to affect security and trade.
“The obvious targets are China on trade and Iran with its nuclear program,” said Mullarkey. “While both issues demand detailed strategic solutions, Trump’s transactional style so far has been to ramp up pressure ahead of negotiations.”
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