The stock market rallied to a record close as President Joe Biden was sworn into office, sparking hopes for another stimulus package and smoother vaccine rollout ahead. A slew of strong quarterly results also boosted sentiment, including from Netflix which soared 16.9%.
The Dow Jones Industrials jumped 257.86 points to 31,188.38.
The S&P 500 strengthened 52.94 points, or 1.4%, to 3,851.85, an all-time high, led by the communication services sector.
The NASDAQ leaped 260.07 points, or 1.8%, to 13,457.25, also a record.
Netflix soared after the company reported strong subscriber growth and said it’s considering share buybacks. Netflix handily beat estimates for global paid net subscriber additions, reporting 8.5 million versus the 6.47 million analysts anticipated. The company also said it expects to break even on a cash flow basis this year.
Morgan Stanley posted earnings and revenue that topped estimates on solid trading and wealth management results. Shares closed the day 0.2% lower.
Procter & Gamble raised its fiscal 2021 forecast and said revenue last quarter jumped on higher pandemic demand for cleaning products. The stock dipped 1.3%, however.
Biden was inaugurated at noon EST today to succeed President Donald Trump as the 46th president of the United States. His inauguration speech focused on the need to bring the country together on the heels of a riot on Capitol Hill and amid extreme partisanship in Congress.
Investors will also be on the lookout for any further information about Biden’s $1.9-trillion COVID-19 relief plan unveiled last week. On Tuesday, Janet Yellen, Biden’s designated nominee for Treasury Secretary, endorsed higher aid spending and urged lawmakers to “act big.”
Biden’s stimulus proposal calls for direct payments of $1,400 to most Americans and additional unemployment benefits as well as state and local government aid. He also announced a sweeping plan to combat the pandemic in the U.S., which includes a nationwide vaccine campaign.
The U.S. fell far short of its goal of vaccinating 20 million people by the end of last year. While the Trump administration’s Operation Warp Speed has delivered over 31.1 million doses across the country, only 12.3 million people have been inoculated.
Prices for the 10-Year Treasury moved upwards, lowering yields to 1.08% from Tuesday’s 1.09%. Treasury prices and yields move in opposite directions.
Oil prices gained 30 cents to $53.28 U.S. a barrel.
Gold prices gained $29.00 to $1,869.20 U.S. an ounce.