Stocks Rise to Records as Tech Shares Recover

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Political unrest in Washington didn’t dent the stock market’s ongoing rally Thursday, with shares of U.S. companies big and small closing at fresh records.

Investors largely looked past Wednesday afternoon’s violent clash between pro-Trump protesters and law enforcement in the Capitol building, instead focusing on what the shift of political power from Republicans to Democrats means for the market.

So far, many investors say they expect to see a glut of spending by Democrats aimed at shoring up the U.S. economy as the Covid-19 pandemic enters its darkest phase yet. Several Democrat lawmakers have already said initial priorities post-inauguration include boosting emergency relief payments to individuals to $2,000.

That spending could have another knock-on effect that hasn’t been seen in years: Inflation.

Cyclical stocks usually do well in an inflationary environment, something investors banked on Thursday by pushing up share prices of semiconductor, bank and consumer discretionary stocks.

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