Dow industrials surge to record high Wednesday near 31,000 as investors digest Democratic win in Georgia

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The Dow Jones Industrial Average [: DJIA] touched an intraday record on Wednesday as investors bet that the Democrats were poised to take control of the Senate following early results from Georgia’s runoff elections. The tech-heavy Nasdaq Composite also briefly edged higher after opening with short losses on Wednesday shortly after the opening bell on expectations for higher taxes and tighter regulations on tech giants. On top of that, government bond yields were surging, suggesting higher costs for businesses and also provide some resistance for investors weighing buying bonds versus stocks. The Dow was up over 400 points late-morning Monday at 30,804, propelled by a surge in banks, including Goldman Sachs Group Inc. , JPMorgan Chase & Co. and American Express Co. , which were benefiting from rates rising, with the 10-year Treasury yield note [: TMUBMUSD10Y] hitting its highest level since March in early trade around 1.05%. The Nasdaq Composite was up about 0.1% at 12,832 after hitting an intraday low at 12,649.99, while the S&P 500 index gained 0.9% to reach 3,759, trading in record territory and just about 10 points shy of its intraday record high at 3,769.99. Democrat Raphael Warnock defeated incumbent Republican Kelly Loeffler for one U.S. Senate seat and Democrat Jon Ossoff held a narrow lead over Republican Sen. David Perdue in the other race, according to the Associated Press. A Democratic sweep of both seats in Georgia would give the party control of the Senate as Vice President-elect Kamala Harris would cast tiebreaking votes as the chamber’s president.
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