The Bernie Bounce: Stocks Rise to Record Highs After Sanders Win

The Bernie Bounce: Stocks Rise to Record Highs After Sanders Win

The Bernie Bounce: Stocks Rise to Record Highs After Sanders Win

Do not let anyone tell you the stock market lacks a sense of humor.

The day after the only sitting socialist Senator won the New Hampshire Democratic primary to become the front-runner for his party’s nomination, stocks levitated to news highs. The Dow Jones Industrial Average gained nine-tenths of a percentage point, or 275 points, to hit a record close of 29551. The S&P 500 gained 0.65 percent and the Nasdaq Composite rose 0.9 percent, also setting new records.

Just in case the meaning of this was too obscure, investors made sure to bid up the price of health insurance companies whose business Sen. Bernie Sanders has promised to ban altogether as part of his scheme to extend government health insurance to everyone. United Health shares jumped 4.4 percent. Anthem shares soared 5.7 percent, Humana shares rose 5 percent, and Cigna climbed 3.4 percent.

Sanders has also promised to end the use of fossil fuels and to hold energy company executives criminally liable for, well, being energy company executives. On Tuesday the energy sector, which was the S&P 500’s weakest-performing sector, become one of the index’s biggest winners, rising 1 percent.

In other words, investors are convinced that there is little chance that Sanders will actually become president. What’s more, the rising possibility that he could win the nomination is seen as increasing the chances that President Donald Trump will win re-election.

“A Sanders nomination/contested convention increases the likelihood of a Trump victory and potentially even an all-Republican government, also a positive for stocks,” analysts at Raymond James wrote in a recent note to clients, according to Marketwatch.

Investors may be over-doing it. Certainly, Wall Street does not have a great track record when it comes to predicting the outcome of political contests. State Street Global Advisors’ deputy global chief investment officer, Lori Heinel, recently sounded the alarm in an interview with Marketwatch.

“I think investors are sort of sanguine about the idea that [President Donald] Trump will most likely win, and if you look at most of the analysis, they predict overwhelmingly that Trump will defeat any of the likely Democratic candidates,” Heinel said. “If that doesn’t happen or if it looks as though the Democratic candidates were gaining momentum, or depending upon which of the candidates it might be, the reversal in major policy imperatives would be quite dramatic.”

Read More

Share:

Share on facebook
Share on twitter
Share on linkedin

More News

Doug Collins: Swamp Couldn’t Stop Trump, Schiff Can’t Spell ‘Truth’

Doug Collins: Swamp Couldn’t Stop Trump, Schiff Can’t Spell ‘Truth’

The top Republican on the House Judiciary Committee, speaking at the annual Conservative Political Action Conference (CPAC) Thursday, noted that the “swamp” failed to stop U.S. President Donald Trump’s supporters from electing him to office nor efforts to remove him. Referring to the FBI lying to obtain a Foreign Intelligence Surveillance Act (FISA) wiretap on… … Read More

Expert: Trump Can End H-4 Visas, OPT Program to Shore Up U.S. Jobs

Expert: Trump Can End H-4 Visas, OPT Program to Shore Up U.S. Jobs

President Trump can shore up jobs for American professionals and graduates by ending the H-4 visa program and the Optional Practical Training (OPT) that gives away thousands of U.S. jobs to foreign nationals every year, an immigration expert says. In an exclusive SiriusXM Patriot Breitbart News Daily interview at CPAC, NumbersUSA’s Chris Chmielenski said there is still… … Read More

Amy Klobuchar Decides to Address AIPAC Conference –

Amy Klobuchar Decides to Address AIPAC Conference –

Sen. Amy Klobuchar (D-MN) has decided to address the American Israel Public Affairs Committee (AIPAC) policy conference in Washington, DC, next week — several days after it was reported that she would not attend. On Wednesday, the Times of Israel reported that neither Klobuchar nor South Bend, Indiana, Mayor Pete Buttigieg would be attending AIPAC.… … Read More

CBS’ ‘The Amazing Race’ Shuts Down Production Due to Coronavirus

CBS’ ‘The Amazing Race’ Shuts Down Production Due to Coronavirus

LOS ANGELES (AP) — The globe-trotting reality series “The Amazing Race” is taking a breather as a precaution due to the virus outbreak affecting several countries. CBS said in a statement Friday that it had temporarily suspended production and was sending contestants and crew members home as a precautionary measure. Filming on the show’s 33rd… … Read More

FOLLOW

© Copyright 2020 | American Priority | Privacy Policy | Cookie Policy