- FAANG stocks recovered Thursday after a tough Wednesday session caused by Georgia’s surprising election results.
- Gillman Hill Asset Management CEO Jenny Harrington pointed to newfound clarity of what’s to come from Washington as her reasoning for the rebound.
- Other analysts noted the potential for more fiscal support and less political gridlock as a boost to Big Tech names.
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Jon Ossoff and Raphael Warnock pulled off narrow victories in the Georgia Senate election runoffs Wednesday. This led to uncertainty for FAANG names, which were down across the board, as investors digested the likelihood of increased regulation for Big Tech under a Democrat-controlled government.
Still, despite the Big tech route, the Dow Jones Industrial Average managed to continue its ongoing rally with a 500 point up-swing on the day.
FAANG stocks rebounded on Thursday, brushing off the prior session’s anxiety around the election result and political unrest in the nation’s capital.
Analysts argued the recovery was due to more clarity about what to expect from Washington going forward.
“The bottom line is, the market doesn’t care that much about whether it’s a blue wave or a red wave, they care about clarity and that’s what we got,” Gillman Hill Asset Management CEO Jenny Harrington said in an interview with CNBC’s Scott Wapner Thursday morning.
Gillman referenced the unprecedented vaccine rollout, President Trump’s statement on an ‘orderly transition of power’, and the joint session of Congress which affirmed President-elect Biden’s victory over President Trump early Thursday as keys to the continuing rally in equities.
Christopher Smart, chief global strategist at Barings added in a statement: “The expectation is now we’ve avoided gridlock, and more fiscal support will be available to the economy through this coming year, rather than less,” per the Wall Street Journal.
It wasn’t just FAANG stocks that saw a rebound on Thursday either, tech stocks broadly gained on the day with shares of Tesla breaching the $800 per share mark for the first time.