The stock market’s performance since President-elect Joe Biden’s November victory has been the best post-election performance since the 1960 presidential election.
The market has risen 13% since Joe Biden’s election victory on Nov. 3 as of Tuesday, the highest since the 8.8% market surge that occurred between former President John F. Kennedy’s 1960 victory and his 1961 inauguration, according to CFRA Research, CNN Business reported. Stocks gained another 8.9% over the course of Kennedy’s first 100 days as president.
The market saw much of its gains after pharmaceutical companies Pfizer and Moderna reported positive large-scale human trial results for their coronavirus vaccines and the federal government began distributing doses. Investors also responded positively to Biden’s appointment of former Federal Reserve chairwoman Janet Yellen to lead the Treasury Department in December.
“Neither the president-elect, nor I, propose this relief package without an appreciation for the country’s debt burden,” Yellen said Tuesday during her confirmation hearing, CNBC reported. “But right now, with interest rates at historic lows, the smartest thing we can do is act big.”
“I believe the benefits will far outweigh the costs, especially if we care about helping people who have been struggling for a very long time,” Yellen said. (RELATED: US Lost 140,000 Jobs In December, Economists Expected A Modest Gain)
Yellen suggested that the Biden administration will push a large coronavirus relief package early in Biden’s presidency, according to CNBC. Biden released a $1.9 trillion proposed relief bill Thursday, which included $2,000 direct payments to Americans and an additional $400 in unemployment pay per week.
While stocks across the board have seen significant gains since November, oil and bank stocks have seen the biggest gains, CNN Business reported. Oil companies are likely to benefit from an economic recovery while banks will benefit from increased loan demand.
Small companies also have had success, outperforming both the Dow Jones Industrial Average and S&P 500, according to CNN Business.
The S&P 500 increased 5.8% between President Donald Trump’s 2016 election victory and 2017 inauguration, according to Yahoo Finance data. The S&P 500 closed on Nov. 8, 2016 at 2,139.56 and closed on Jan. 19, 2017 at 2,263.69.
During Trump’s presidency, the stock market hit several milestones as it surged higher than ever before, according to Reuters. However, the coronavirus pandemic caused a significant downturn negating many of those previous gains.
Content created by The Daily Caller News Foundation is available without charge to any eligible news publisher that can provide a large audience. For licensing opportunities of our original content, please contact firstname.lastname@example.org.