Quite simply this: Investors don’t really look at what’s happening right now. They look to the future and what it could bring for the companies they invest in, or the economy as a whole.
Even though Democratic control of the House, Senate and White House could spell tax increases in the future, investors chose to look on the bright side — more government help during the crisis.
So that’s why, despite the unprecedented chaos at the Capitol, Wall Street remained mostly optimistic, even after stocks came off their afternoon highs.
America has overcome civil unrest before. Wall Street is betting it will do so this time, too.
Then again, the market might also get reality check Thursday and sell off. There is, after all, the ongoing pandemic, and worsening infection numbers have led to stricter rules in various states. But again, investors will likely take the long view: The next administration is expected to make good on its promises to act forcefully to help America’s businesses and workers get back to strength.
Read More: Here’s why Wall Street ignored most of the chaos in Washington