Stocks have gained about 13% since Election Day as of Tuesday, a day before Joe Biden’s inauguration — marking the the best post-election market performance for a new president in modern history, according to CFRA Research.
The second-biggest surge was from late 1960 to early 1961, when John F. Kennedy defeated Richard Nixon, and the S&P 500 rose 8.8%. The market continued to rally during JFK’s first 100 days in office, rising another 8.9%.
The current Biden market surge represents the second time in a row that Wall Street has cheered a new president: Stocks gained more than 6% in the election to inauguration period after Donald Trump beat Hillary Clinton in 2016. The market gained 5% during Trump’s first 100 days as well.
But there’s one major difference: Trump was inheriting an economy that was growing at a stable rate during the long, post-Great Recession recovery. Biden is walking into the Covid-19 economy.
The stimulus expectations, combined with the fact that Americans are starting to receive coronavirus vaccinations, has fueled hopes that the economy – and corporate earnings – will improve later this year.