Following Joe Biden's inauguration, the main US stock indexes managed to develop a strong rally. Apparently, it is not going to be short-lived.
Investors are awaiting the adoption of Biden's $1.9 trillion rescue plan aimed at revitalizing the US economy. The ambitious stimulus package includes another round of payments or stimulus checks to the American people, an increase in unemployment benefits, and an extension of this aid program for a longer period. The only obstacle for its quick adoption may be Republicans who are greatly concerned about the growing public debt.
Meanwhile, the US stocks totally ignore the probable political confrontations. The Dow Jones, S&P 500, and NASDAQ Composite indexes are moving up to fresh highs. According to stock market statistics, the last time such a situation occurred in 1985 at the start of Ronald Reagan’s second term as president. Curiously enough, optimism in the equity market was fueled only by Biden's promise on his first day in office to sign a flurry of executive orders, memorandums, and directives. He also reversed Trump's attempts to withdraw from international agreements such as the Paris climate accord as well as halted the United States' departure from the World Health Organization. "There's no time to start like today. I'm going to start by keeping the promises I made to the American people." Biden pointed out. Funny enough, with the stroke of a pen, Biden sent the US stocks to record highs.
