Stock Rally Fades as Markets Rattled by Riots in U.S. Capitol by Pro-Trump Mob
After U.S. financial markets hit record highs earlier Wednesday, stocks pared their gains in the afternoon after violence instigated by pro-Trump rioters erupted in Washington, D.C.
The Dow Jones Industrial Average ended the day up 1.4%, to a record 30,829.40 points. That was off its intraday highs, when it reached as high as 31,022 (+2.2%). The late-session decline came as law enforcement and National Guard members responded to the invasion of the U.S. Capitol by thousands of protesters waving pro-Trump signs and banners.
The market rally earlier was spurred by investor optimism that a Democrat-controlled Senate, coupled with President Biden’s administration and the House, would result in a new economic stimulus package.
Stocks of large tech companies including Facebook, Amazon, Apple, Google and Netflix, stayed in negative territory throughout the day on fears that Democrats would crack down on Big Tech with new regulations or legislation. The balance of power in the U.S. Senate remained uncertain after Democrats won one seat in the Georgia runoff elections while the other race was too close to call.
More to come.