Jan. 5, 2021
Good evening everyone! Welcome to a new episode of “Stocks Today”, explaining what forces moved the stocks in the U.S. equity market today (Tuesday, January 5, 2021).
All main indexes closed positive today, with the S&P 500 up 0.71%, the Dow Jones up 0.55% and the Nasdaq up 0.95%.
Why did the stock market move today?
Today is runoff election day in Georgia, with Americans called to vote for two seats in the U.S. Senate.
Despite the fear for a future tax increase in case Democrats win both seats, investors believe that such increase may take a while to get enacted in light of the ongoing pandemic. Furthermore, an additional stimulus bill providing a $2,000 check is expected to pass in case Democrats take control of the Senate.
Since exit polls show that Democratic candidates should have the lead in both seats, investors seem optimistic about the consequences of a Democratic Congress for the near future.
Stock of the day
After Saudi Arabia decided to voluntary cut its oil supply by 1 million barrels a day, shares of several U.S. oil and gas giants jumped today. Among these, stocks in Occidental Petroleum Corporation (NYSE: OXY) jumped more than 10%.
That’s all for this Tuesday’s stock market update. Stay tuned to receive your daily update!