Stocks Soar After Election, Coronavirus Vaccine News
BOSTON (CBS) - With the news that Pfizer Pharmaceuticals may have a Covid-19 vaccine ready for use soon, the stock market went through the roof on Monday. The Dow ended the day up 835 points after surging more than 1,600.
But perhaps even more importantly than a day of good news, is that the market is poised for long-term gains. Why? Because Wall Street doesn't like uncertainty. And with a Democratic president-elect, and a Republican-controlled Senate, no blockbuster deals will likely get done.
"What that actually means is that it's pretty unlikely that you're going to get any major tax overhauls for example, or major changes to regulations, and so the markets generally like that, because they like the predictability of it," said Steve Dimitriou of Mayflower Advisors.
Even though President-elect Joe Biden is known to make deals across party lines, a bendable Senate is not likely in the immediate future. "What that does is reduce the threat of tax hikes," said Jeff Swett, of Swett Wealth Management.
Swett is also hopeful now a second economic stimulus package will get approved.