Stock Market Hits Record on Biden Win and Vaccine Hopes

“We may actually have capitulation from the White House and be able to say that the election is finally behind us,” said Steve Sosnick, chief strategist at Interactive Brokers in Greenwich, Conn.

The SP 500 rose 1.4 percent Friday, exceeding its Sept. 2 closing record of 3,580.84. Wall Street had toyed with that high for days, first because of the view that the presidential election delivered an outcome that could lead to growth next year, and later after Pfizer released surprisingly good trial results for its vaccine candidate. The rally has left the SP 500 up 9.6 percent this month.

And despite levels of infection that have surpassed the frightening first stage of the outbreak — raising the prospect of fresh lockdowns to stem the rise — investors appeared to bet on a short-term improvement in the economic outlook.

Banks, industrial companies and small stocks — all of which are sensitive to near-term expectations for growth — were among the best performers of the day Friday. Shares of companies that have become barometers of sentiment toward the pandemic also reflected optimism: Simon Property Group, the shopping mall operator, gained 8 percent, and MGM Resorts rose more than 9 percent.

Companies that have benefited as consumers huddled at home amid the pandemic, like Peloton Interactive and Zoom Video Communications, were lower.

Article source: https://www.nytimes.com/2020/11/13/business/stock-market-record.html