Biden is Bullish?
On Wednesday, former United States Vice President Joe Biden was sworn in as the 46th president of the United States. That same day, the markets posted record inauguration day performances.
Wall Street seems to be optimistic about the new presidency. On Inauguration Day, the Nasdaq Composites 2% rise was the most significant Inauguration Day rally ever. The S&P 500 also posted record numbers, rising 1.5% to mark its most significant Inauguration Day rally since Republican President Ronald Reagan took office for his second term in 1985. The markets have been bullish ever since Joe Biden was elected president.
Between November 6, 1928, the day Republican President Herbert Hoover was elected and March 4, 1929, Hoovers first day of office, the S&P 500 rallied 13.3% — this marked the best election day to inauguration day stock market performance ever, until now.
According to FactSet data, between November 3, the day Democratic President Joe Biden was elected, and January 20, his first day of office, the S&P 500 soared 14.3%, the best election day to inauguration day stock market performance in history.
In comparison, former Republican President Donald Trump marked a 6.1% gain, former Democratic President John F. Kennedy marked an 8.8% gain. And in his second term, former Democratic President Bill Clinton marked an 8.7% gain.
While it is difficult to attribute the stock market rally directly to President Joe Biden’s election, the rally does give us a clue of how investors are reacting to this new change in power.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.