GOLDEN VALLEY, Minnesota — Despite the pandemic and the yet-to-be determined election, the stock market rallied again Thursday making gains we haven't seen in six months.
The S&P 500 jumped 1.9%, to 3,510.45, and the Dow Jones Industrial Average gained 1.9%, reaching 28,390.18 by the close.
The Nasdaq Composite also surged on tech stocks, finishing up 2.6% to 11,890.93.
The growth is steadying the markets for their best week since April.
So, why are the markets surging still in the midst of a pandemic and an unfinished election?
“They see a bit more stability because they see a less likely chance of any big change coming soon with the division there is,” said Justin Halverson, financial advisor with Great Waters Financial.
Halverson says with the political needle pointing toward a Joe Biden win and a split Congress, it means Biden's promise to raise taxes on corporations and wealthy Americans becomes much less likely. The split Congress also means a less likelihood of new major restrictions on blue chip tech companies like Google and Facebook.
“It also means there's a higher likelihood of more stimulus. I know some relief got bogged down and didn't get done before the election. I think what Wall Street thinks right now is some of that stimulus, some of that bailout package is going to get approved and Wall Street likes that,” said Halverson.
That said, Halverson says investors aren't out of the woods yet, and he expects more volatility in the short term.