This post was originally published on this site
President-elect Joe Biden
AP
“ ‘First of all, it means re-engaging from the United States. Re-emphasizing international cooperation to the many challenges we face globally. So that’s good news. I think that’s the first reaction that you see in the market today.’ ”
That’s BlackRock BLK, +2.07% Vice Chairman Philip Hildebrand’s response on Monday when he was asked on Bloomberg TV what a Joe Biden administration means for the world economy.
“Initially at least, I would expect that we see a sort of reinforcement of the existing trend that we’ve seen in the market for a while,” Hildebrand continued. “Hunt for yield and growth stocks.”
The existing trend from last week certainly spilled over into this week’s market… and then some. At last check, the Dow Jones Industrial Average DJIA, +4.20% was up more than 1,000 points while the Nasdaq Composite COMP, +0.76% and S&P 500 SPX, +2.83% were also firmly higher.
Where do we go from here?
“There are open questions but the initial impulse is certainly for the world to look forward to a United States that re-engages us in a more systematic more predictable way to tackle many of the severe problems we face globally,” Hildebrand told Bloomberg TV.
Watch the full interview:
BlackRock, with nearly $8 trillion under management, also struck an optimistic note last month when it said investors could enjoy “upside even in front of probably rising infection rates with COVID-19.”
Indeed, with the number of COVID-19 cases spiking across the country, the stock market just keeps churning higher. Even before Monday’s big rally, last week was a big one for bulls.
The Dow rallied 6.9% over the five-day period, while the S&P jumped 7.3%. The tech-heavy Nasdaq outperformed both of the other major benchmarks with a 9% surge.
