WASHINGTON: Protesters supporting Donald Trump swarmed the U.S. Capitol on Wednesday, putting it on lockdown, as Vice President Mike Pence rebuffed the president’s demand to overturn his loss to Democrat Joe Biden and the Senate’s Republican leader denounced a bid in Congress to undo the election outcome.
On the same day a runoff election in Georgia looked set to put control of Congress in Democratic hands, Trump supporters overturned barricades and clashed with police on the U.S. Capitol grounds and streamed inside the building. The demonstrations flared as lawmakers met inside to formally certify Biden’s victory over Trump in the Nov. 3 election. Law enforcement authorities struggled to maintain order.
On Wall Street, the S&P 500 cut gains and the Nasdaq turned lower as the mob, dotted with Trump’s red Make America Great Again ball caps, moved inside the building. Yields on U.S. Treasury securities ticked lower and the U.S. dollar index turned lower.
COMMENTS
TIM GHRISKEY, CHIEF INVESTMENT STRATEGIST, INVERNESS COUNSEL, NEW YORK
“We were having a good day in the market overall until 2:15 p.m. (1815 GMT) when news broke that the Capitol was being besieged by pro-Trump protesters. The market has been paring its gains since then. The reaction so far has been pretty muted considering what’s going on.”
“It hasn’t been a sharp market drop. There have been buyers coming in as well. This is a bit shocking visually to see this unfold on television for investors.”
“It suggests almost a revolution but this is going to pass and Biden will be declared President. That’s what investors appear to be saying. This is a sideshow without any economic, financial impact or any impact on our political system.”
“Investors aren’t thinking we’re in for a revolution or a seizing of the government.”
“If the situation escalates the market could easily fall further.”
EDWARD MOYA, SENIOR MARKET ANALYST, OANDA, NEW YORK
“I am seeing the images of people storming the Capitol and Pelosi being evacuated and the dollar is not even blinking. Trump seems like he has been able to delay the certification, this isn’t the way you would want to go about it. This is insane.
“It goes to show that right now, markets, this spectacle is just the last minutes of the Trump administration. It just really goes to show that investors, all they are focused on right now is Jan 20 when Biden takes over, that trumps everything and the election results are final.
“For what we are seeing right now, this is just more theater.”
CHRISTOPHER MURPHY, CO-HEAD OF DERIVATIVES STRATEGY, SUSQUEHANNA FINANCIAL GROUP, BALA CYNWYD, PENNSYLVANIA“For most of the day before the protests really escalated, there was a ton of (VIX) put spread buying under the belief that volatility would move lower through much of the next year, or at least quarter. Stocks have pulled in, except for gun stocks, so it’s not a surprise to see the VIX spike on an event like this….But I have not seen a notable uptick in investors chasing this by buying (VIX) calls. I don’t think investors are necessarily looking for more upside in the VIX on this. The bias still seems to be, in the medium term, for the VIX to pull back.”
(Compiled by Alden Bentley and the Global Finance & Markets Breaking News team)
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