The Biden era is seeing a good start on Wall Street, even surpassing the euphoria following President Donald Trump’s upset victory in 2016.
The S&P 500 has surged 10% since Election Day to all-time highs. That nearly doubles the 5.5% rally during the same post-election period in 2016.
The Nasdaq, lifted by high-flying tech stocks including Amazon and Zoom, is up a stunning 15% since November 3. That almost triples the Nasdaq’s 5% post-election bump of four years ago.
Those are impressive returns, especially considering Trump repeatedly warned stocks would “crash” if Americans failed to reelect him. That has hardly been the case, at least so far.
Even though President-elect Joe Biden might have (very) early bragging rights, Wall Street’s post-election celebration is not solely — or even primarily — about Biden’s victory. Instead, the gains are being driven both by a sense of relief that nightmare election scenarios were avoided and, perhaps most importantly, that vaccines will hopefully help end the pandemic.