Mary Altaffer / AP
The stock market had its best week since April despite the turmoil of an unresolved election.
While major stock indices ended Friday a bit lower, the decline was not enough to offset the four strong gains. The S&P 500 rose 7.3% for the week, while the Dow Jones Industrial Average rose about 1,800 points, up 6.9%.
While former Vice President Joseph Biden is leading the way in the presidential run, the election has failed to meet Democrats’ expectations as the prospect of retaking the Senate has faded. The Democrats retain control of the House of Representatives.
The voter potential split decision could mean at least two more years the government is divided, a prospect investors will welcome as it could make it difficult for Democrats to pass the agenda. their economy more.
Democrats have campaigned on issues such as increased regulation or increased taxes on the wealthy, measures that are often unpopular on Wall Street.
“If Republicans maintain control of the Senate, the likelihood of a large tax increase will decline at least until after the 2022 midterm elections,” said Jim Baird, chief investment officer at Plante Moran Financial Advisors.