Democratic megadonor Marc Lasry downplayed concerns about Joe Biden's fundraising abilities on Tuesday, arguing this week was critical to the former vice president's ability to stay in the primary. Stocks came back in a big way Wednesday, with many Wall Street firms attributing the relief rally to the outcome from Super Tuesday.
Former Vice President Joe Biden secured a lead in the Democratic primary after racking up big wins in delegate-rich states like Texas and Virginia. Biden’s performance put him ahead of Bernie Sanders in delegates, soothing some of Wall Street’s fears about the Vermont senator’s anti-capitalist policy proposals.
“The race is not yet over, but immediate reaction is likely a relief rally as the tail risk of some of Sanders’ policies will be seen as less likely today than last week,” Raymond James policy analyst Ed Mills said in a note to clients.
After losing nearly 800 points on Tuesday despite an emergency interest rate cut from the Federal Reserve, the Dow Jones Industrial Average was up more than 750 points on Wednesday around 1 pm ET. The S&P 500 and Nasdaq were also up 1.8% and 1.7%, respectively. By far the biggest contributor to the Dow’s gain is UnitedHealth Group, solely adding about 160 points to the 30-stock benchmark as the managed care provider gained 9%.
Sanders, a self-proclaimed democratic socialist, has vowed to take on the pharmaceutical industry and his biggest proposal, “Medicare for All,” would end private health insurance like that provided by UnitedHealth.
For access to live and exclusive video from CNBC subscribe to CNBC PRO:
» Subscribe to CNBC TV:
» Subscribe to CNBC:
» Subscribe to CNBC Classic:
Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.
Connect with CNBC News Online
Get the latest news:
Follow CNBC on LinkedIn:
Follow CNBC News on Facebook:
Follow CNBC News on Twitter:
Follow CNBC News on Instagram:
#CNBC
#CNBC TV
0 Comments