On Wednesday (6th) supporters of U.S. President Trump protested against the results of the general election, and riots were set off inside and outside the U.S. Capitol, which caused Congress to suspend the procedure for certifying Biden as president. It rose 437.80 points. Although it failed to break through 31,000 points, the index still hit a record high.
Despite Trump’s pressure, US Vice President and Senate Speaker Pence stated on Wednesday that he would not prevent Congress from certifying Biden’s victory. With the start of the Congressional certification process, chaos appeared in the US Capitol on Wednesday.
Trump supporters opposed the election results. Riots broke out inside and outside the U.S. Capitol. Supporters broke windows and even broke into the Congress to protest. The Capitol was immediately blocked. Vice President Pence evacuated from the tunnel in an emergency, and the certification process was abruptly suspended.
Trump tweeted condemning the mob action, calling on supporters to go home immediately, but still accused the Democrats of “stealing” his victory.
The Department of Homeland Security (DHS) sent people to suppress the riots. During the period, it was reported that law enforcement officers used tear gas and fired warning shots. One person was shot. President-elect Biden condemned the rioters and called on law enforcement agencies to quell the violence.
Why did the US stocks Dow Jones and Standard & Poor’s still perform well and were not affected by the congressional riots? Why doesn’t the market react to news that people are scared?
Wall Street analysts said that although the news triggered a human emotional response, the market was unable to respond to events that did not seem to have an impact on the economy, because today US stocks were more affected by the news of the “Georgia Senate election”.
The results of the Democratic Party’s full control of Congress, a larger stimulus bill will be more likely to pass, thereby giving impetus to the US economy.
In addition, looking back at history, according to Bespoke Investment Group data, when the Democrats controlled the White House, Senate and House of Representatives, the Dow Jones index rose by an average of nearly 18%.
Just like when Biden won the election, the market believes that congressional turmoil will eventually pass, prompting Dow Jones to return to the red today.
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