Investors move from coronavirus woes to Biden wins as markets rally on Super Tuesday results
While the aftermath of Super Tuesday has left the Democratic Party riven between its more liberal and moderate wings, investors viewed last night’s results as a win for business and markets.
Shaking off the steady beat of bad news about the advance of the novel coronavirus COVID-19 within the U.S., major markets rose on Wednesday following the news of Joe Biden’s surge to the front of the Democratic Primary pack on Super Tuesday.
The Dow Jones Industrial Average was up a whopping 1,173.45 or 4.5% to close at 27,090.86, while the Nasdaq was up 334 or 3.85% to close at 9018.09 and the S&P 500 was up 126.75 or 4.22% to 3130.12.
Biden’s moderate position contrasts with the more liberal policies endorsed by Vermont Senator Bernie Sanders . Sanders’ positions on how to combat climate change and reshape the healthcare industry diverged sharply from the incrementalism that Joe Biden promoted, both as vice president and on the campaign trail this year.
It’s been a rocky road for the major stock indices, but over the past few days investors’ fears about the economic impact of the coronavirus seem to have stabilized as the U.S. government begins to take more decisive action.
Since hitting their troughs of the year on Friday, the Dow has risen 1,681.50 points, the Nasdaq is up 748.35 points and the S&P 500 is up 265.20 points — buoyed in part by today’s news.
Tech’s biggest companies, including Alphabet, Amazon, Apple, Facebook and Microsoft, all saw their stocks rise on a day that the market soared. Health insurance companies and pharmaceuticals were among the day’s big winners buoyed both by the Biden victory and new congressional cash coming from the U.S. government to finance the development of tests, treatments and potentially vaccines for the new coronavirus.