US stock futures rallied slightly during overnight trading on Wednesday, as investors left the likely event of a Democratic-held Congress and continued to shake off the riots in the Capitol.
Dow Jones Industrial average futures were up 85 points. S&P 500 futures gained 0.45% and Nasdaq 100 futures gained 0.78%.
The markets were largely untouched by the chaos in Washington on Wednesday caused by pro-Trump rioters in the Capitol. Lawmakers had just begun the procedural process of counting electoral college votes and formally proclaiming President-elect Joe Biden the winner when protesters stormed the chamber.
US officials later said on Wednesday night that the Capitol was safe after the protesters were acquitted. Congress re-convened and continued the process to confirm Biden’s victory on Wednesday evening.
“The strength of the country is our institutions and our laws,” QMA’s Ed Keon told CNBC. “Seeing this is daunting, but we will be victorious and I think that’s the message from the markets.”
“I think the reason the markets aren’t too confused is that it won’t change the transfer of power,” added Tom Lee, co-founder of Fundstrat Global Advisors.
On Wednesday, US stocks surged as Senate election results came in in Georgia. Minutes after the closing bell, NBC predicted Democrat Jon Ossoff would beat Republican David Perdue. This comes after NBC previously projected Democrat Raphael Warnock defeating Republican Senator Kelly Loeffler in their run-off.
Georgia’s election results create a 50-50 senate that Democrats will control, due to the simultaneous vote in Vice President-elect Kamala Harris. It is widely expected that a Democratic-held senate would push for a more robust stimulus package, speculation that boosted stocks on Wednesday.
The Dow Jones Industrial Average climbed more than 400 points or 1.4% to hit a record high. The S&P 500 rose 0.57%, hitting an all-day record level during the session. The two averages, however, ended their peak during the riots.
The Nasdaq Composite was the relative underperformer, falling 0.6% as Facebook, Amazon, Apple, Netflix and Google parent Alphabet all closed lower.
The small cap benchmark Russell 2000 jumped nearly 4% above the 2,050 level in hopes of further fiscal support.
The yield on 10-year Treasury bonds broke above 1% for the first time since the pandemic-induced defeat in March late Tuesday. The jump in interest rates caused a rally in bank stocks on Wednesday.
Amid the chaos, the cryptocurrency Bitcoin hit $ 36,000.
The labor department will announce last week’s unemployment claims on Thursday at 8:30 am. Economists polled by Dow Jones expect 815,000 Americans to file for unemployment last week, compared to last week’s 787,000 claims.
Bed Bath & Beyond, Constellation Brands, Walgreens Boots Alliance and Conagra report quarterly figures for the bell on Thursday. Chipmaker Micron reports after the bell.
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