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Stocks Rally on New Administration's Measures

By Ibeth Rivero

Ibeth contributes daily market commentary in both English and Spanish (both of which she speaks fluently) and she also manages the DailyForex mobile app to ensure that traders around the world are getting important market updates in real time.

Stocks gain; markets watch for $1.9 trillion stimulus.

StocksThe new President of the United States, Joseph R. Biden, recently signed 15 executive orders on his first day in office.

“Some of the executive actions I’m going to be signing today are going to help change the course of the COVID crisis, we’re going to combat climate change in a way that we haven’t done so far and advance racial equity and support other underserved communities,” said Biden. “These are just all starting points.”

For example, under Biden's administration, the country is set to re-enter the Paris Climate Accords, in an attempt to get the United States to officially combat climate change. Another action Biden approved implies extending a moratorium on evictions as well as suspending student loan payments until later this year.

According to Biden's team, more executive actions are on the way, such as granting citizenship to millions of illegal aliens within the United States.

Biden pledged to implement a $1.9 trillion stimulus package that has raised the expectations of investors, though his administration now says that the bill won't even go to the House floor until March, at the earliest. However, he still would need to convince the Republican Party, which historically has not been very friendly towards government spending. Some Republicans have already expressed their willingness to work with the new administration, though many don't agree regarding the size of the stimulus package.

Yesterday, the stock markets rallied ahead of Biden's inauguration. The Dow Jones Industrial Average gained 0.83% during the session, closing at the 31,188.38 level, followed by the S&P 500, which gained 1.39% and closed the session at the 3,851.85 level. Similarly, the NASDAQ 100 gained by 2.31% during the session, closing at the 13,296.45 evel, followed by the NYSE Composite, which gained by 0.73% during the session and closed at the 15,097.28 level.

Ibeth Rivero
About Ibeth Rivero

Ibeth contributes daily market commentary in both English and Spanish (both of which she speaks fluently) and she also manages the DailyForex mobile app to ensure that traders around the world are getting important market updates in real time.

 

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