Transfer of political power in the United States is always seen as a global political event. If the incumbent president remains in power, the political and economic fluctuations are very limited. Now, it is the time for Joe Biden to become the 46th U.S. president. It is now clear that his Democratic Party will now control the Congress. The United States of America is the leading political and economical power. Investors all around the world keep an eye on such events and plan their next move according to the situation. Even though democrats have swept Washington, stock markets are completely optimistic. Yes, the transfer of power was filled with chaos but Wall Street has not lost the hope. All of us know that the economic consequences of global pandemic Covid-19 were severe. So, all nations are trying to revive their economy in a very cautious manner.
Various nations are rolling out their vaccines. Such actions are bringing back the lost confidence of the investors. There are various sectors that get a boost when the economy performs very impressively and this keeps driving the S&P 500's advance. Joe Biden stepped forward with a relief package of $1.9 trillion. It will surely boost the machinery and infrastructure stocks. In the agenda of the newly elected president, clean energy stocks are likely to get some benefit. Signs of recovery are visible and Biden is not in a hurry to raise corporate taxes. Investors are now counting upon stocks of tech companies. The financial experts of the US are hoping that the economic policies of the newly formed government will benefit smaller companies.
India is recovering at a slow pace but it appears that China has managed to revive its economy by boosting trade and investment. China is the World's second largest economy after the United States of America. It was the only major economy to avoid a contraction in 2020. Even though the global output fell, the performance of China was impressive. The economists are expecting that in the New Year China's GDP will expand quite impressively, about 8.2%, outpacing all rivals including the USA. By the end of the decade, China aims to become the world's largest economy. Recently, the nation was also locked in a trade war with US President Donald Trump. So, the country is strengthening its economic ties with Europe and Asia.