what was the stock market when biden took office

This article answers what was the stock market when biden took office by giving exact index closes on January 20, 2021, the immediate drivers cited by market commentators, sector moves, short-term ...

2025-09-25 12:55:00

By Lily Wong

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Note: This article answers the question "what was the stock market when biden took office" with contemporaneous index closes, market context, and sourced commentary. All market closes are Eastern Time and referenced to the Jan 20, 2021 trading session.

Lead summary

This piece addresses what was the stock market when biden took office. On 20 January 2021 U.S. equity indexes finished the trading day at or near all-time highs—driven by hopes for large fiscal stimulus, progress on COVID-19 vaccination, and relief over an orderly transition. Major closing levels on Inauguration Day were: Dow Jones Industrial Average ~31,188.38; S&P 500 ~3,851.85; Nasdaq Composite ~13,457.25. As of Jan 20, 2021, according to contemporaneous reporting by Al Jazeera, NPR, CNN Business and MarketWatch, markets closed at record levels and commentators cited stimulus expectations and vaccine progress as key drivers.

Market closing values on Inauguration Day

Below are the primary U.S. index closing values for the 20 January 2021 trading session (all figures are closing prints for that date, Eastern Time):

Dow Jones Industrial Average (DJIA): 31,188.38 (close on Jan 20, 2021). As of Jan 20, 2021, according to Al Jazeera and MarketWatch reporting, the Dow closed near/at record levels on Inauguration Day.
S&P 500 Index: 3,851.85 (close on Jan 20, 2021). Multiple outlets reported the S&P 500 at record close that day.
Nasdaq Composite: 13,457.25 (close on Jan 20, 2021). The Nasdaq also finished at or close to record territory, supported by gains in technology and growth stocks.

As of Jan 20, 2021, according to NPR and CNN Business coverage, all three major U.S. indexes traded at or near record highs during the session and closed positively on the inauguration day.

Immediate market drivers and sentiment on Jan 20, 2021

When asking what was the stock market when biden took office, investors focused on a short list of catalysts that helped push prices higher on Jan 20, 2021:

Fiscal stimulus expectations: Markets priced in a higher probability that a large fiscal package would pass, after Democrats won control of the U.S. Senate in early January. As of Jan 20, 2021, media reports highlighted market optimism about the proposed $1.9 trillion relief plan advanced by the incoming administration.
COVID-19 vaccine rollout and economic reopening hopes: Progress on vaccine distribution supported the case for economic recovery and cyclical sector strength.
Orderly transfer of power and reduced political uncertainty: Commentators noted relief that the inauguration occurred without major disruption, removing a variable of uncertainty that had weighed on markets in late 2020 and early 2021.
Liquidity and monetary policy backdrop: The Federal Reserve’s accommodative stance and abundant liquidity remained supportive for risk assets, with many strategists citing easy policy as an underpinning of high equity valuations.

Fiscal policy expectations (stimulus)

A central question tied to what was the stock market when biden took office was how markets were pricing prospective fiscal stimulus. As of Jan 20, 2021, according to contemporaneous reporting (Al Jazeera, CNN Business), investors were increasingly confident that a sizable federal package—publicly discussed at roughly $1.9 trillion—would pass in some form. Market commentary emphasized that a large fiscal package would likely accelerate economic reopening, boost consumer income and demand, and support corporate earnings outlooks, particularly for cyclical industries.

Monetary policy and interest rates

Federal Reserve policy remained very accommodative at the time of the inauguration. As of Jan 20, 2021, the Fed maintained low policy rates and continued asset purchases, and markets expected the central bank to keep stimulus in place until clear signs of sustained recovery. Low short-term interest rates and continued liquidity supported higher equity valuations, while expectations for growth and inflation influenced the yield curve and sector rotation.

Which sectors and stocks led on Inauguration Day

When investors asked what was the stock market when biden took office, they also wanted to know which sectors outperformed. The Jan 20 session showed a mix of strength across both growth and cyclical names. Key patterns reported that day included:

Technology and growth stocks: The Nasdaq Composite’s strong close reflected continued demand for large-cap technology and growth companies, some of which posted positive earnings or forward guidance earlier in the week.
Cyclicals and financials: Expectations for fiscal stimulus and reopening led to gains in cyclical sectors—industrials, financials, and energy—consistent with a reflation trade theme.
Notable individual movers: Several large-cap companies with recent earnings reports or optimistic outlooks helped lift sector benchmarks. As of Jan 20, 2021, media reports highlighted winners across both tech and reopening-sensitive names.

Historical perspective: inauguration-day performance comparisons

MarketWatch and other outlets placed the Jan 20, 2021 market moves in historical context. As of Jan 20, 2021, MarketWatch reported that the market’s Inauguration Day rise was among the strongest in multiple decades for certain measures. Analysts observed that positive inauguration-day returns are not uncommon, but the 2021 session stood out because all three major indexes were at or near record levels amid pandemic-era monetary and fiscal conditions.

Short-term market performance after Inauguration (first 100 days)

Investors also asked what was the stock market when biden took office and how markets behaved in the weeks that followed. As of April 30, 2021 (the end of the first 100 days), several reports summarized market performance during that interval:

Analyses published in late April and early May 2021 (including notes referenced by Business Insider and JPMorgan reporting) highlighted continued gains across major U.S. equity indexes in the period following the inauguration, driven by stimulus progress, strong corporate earnings, and reopening optimism.
That early-period strength included cyclical sectors benefiting from reopening, while high-growth names also continued to perform—resulting in overall positive returns for broad-market benchmarks.

These short-term moves illustrate how the initial market reaction on Jan 20, 2021, was part of a broader narrative linking fiscal policy prospects and economic reopening to asset prices.

Global market reaction

Equity markets outside the United States also reacted to U.S. record closes and stimulus expectations. As of Jan 21, 2021, Al Jazeera and other outlets reported that Asian and European markets responded positively in the trading sessions that followed, reflecting spillover effects from U.S. stimulus hopes and a general improvement in global risk sentiment.

Analyst commentary and balanced interpretations

Commentators around Jan 20, 2021 offered both bullish and cautious interpretations of the market rally—important context for the question what was the stock market when biden took office:

Bullish arguments: Large-scale fiscal stimulus would accelerate growth and improve earnings prospects; low interest rates supported higher equity multiples; vaccine rollout would enable reopening.
Cautionary views: Elevated valuations could leave markets vulnerable to disappointment; timing and size of stimulus were uncertain; pandemic developments and potential regulatory changes remained risk factors.

Media coverage and analyst notes emphasized that attributing market moves to a single cause—such as a presidential inauguration—can be misleading; markets reflect a combination of monetary policy, fiscal prospects, corporate earnings, liquidity conditions, and investor sentiment.

Longer-term outcomes and retrospective view

Those asking what was the stock market when biden took office often want to know how markets performed longer term. Over subsequent months and into the rest of 2021, U.S. equities generally remained strong, though performance varied by sector and period. Reports from financial data providers and market commentators later attributed performance to a mix of fiscal stimulus, continued monetary accommodation, economic reopening, and corporate earnings recovery. Retrospective attribution remains debated among economists and strategists, who advise caution in connecting a single political event to long-term market trajectories.

Data sources, methodology, and time references

Primary closing figures and context used in this article are drawn from contemporaneous market-data and media reporting for the Jan 20, 2021 trading session. Key sourcing conventions applied here:

Index closing values (Dow Jones, S&P 500, Nasdaq Composite) are closing prints for the U.S. trading session on 20 January 2021 (Eastern Time). Sources cited include Al Jazeera (Jan 20, 2021), NPR (Jan 20, 2021), CNN Business (Jan 20, 2021), and MarketWatch (Jan 20, 2021).
Contemporaneous market commentary on drivers and sentiment is drawn from the same news reports and from market commentary published in the 24–72 hours surrounding Jan 20, 2021. For short-term follow-up and first-100-days analysis, reporting from Business Insider and notes referenced to bank research (e.g., JPMorgan summaries) were consulted.
All dates in this article are presented explicitly. Example: "As of Jan 20, 2021, according to Al Jazeera..." This ensures the reader understands the timing of market prints and commentary.

Quantifiable market metrics and limitations

When answering what was the stock market when biden took office, it is useful to include measurable metrics where available. For Jan 20, 2021 session-specific metrics we provide closing index levels above. Some other metrics commonly referenced around that period include daily traded volume and aggregate market capitalization, but publicly available totals can vary by data provider and measurement method.

Note on exchange volumes and market cap: for session-level trading volumes and exact aggregate market capitalization of U.S. listed equities on Jan 20, 2021, consult dedicated market-data vendors and exchange reports (e.g., NYSE Group and Nasdaq market-data publications, Dow Jones Market Data). This article references widely reported index closes and contemporaneous media context; users seeking exchange-level volume and aggregate market-cap snapshots should refer to primary market-data providers.

On blockchain and chain-on activity (not applicable)

The question "what was the stock market when biden took office" concerns U.S. equity markets and traditional financial indexes. Blockchain chain-on metrics (on-chain transactions, staking, wallet growth) are not directly relevant to U.S. stock-index closes. For readers interested in digital-asset metrics, Bitget and Bitget Wallet provide dedicated analytics and reporting for on-chain activity and crypto market metrics.

Analyst notes and cautions

Neutrality reminder: This article is descriptive and historical. It does not provide investment or trading advice. Multiple factors influence equity prices; market moves on Jan 20, 2021 reflected a mix of fiscal expectations, vaccine news, Fed policy, and investor sentiment. Analysts and outlets cited in this article offered both optimistic and cautious perspectives.

References and contemporaneous reporting (selected)

Selected contemporaneous reports used to document the Jan 20, 2021 market session and the immediate context (report dates included):

As of Jan 20, 2021, according to Al Jazeera: "US stocks close at new all-time highs on Biden's inauguration day" (reporting on index closes and market drivers around Jan 20, 2021).
As of Jan 20, 2021, according to NPR: "Stocks Close On Record Highs After Biden Inauguration" (summary of index closes and market commentary).
As of Jan 20, 2021, according to CNN Business: coverage titled similar to "Stocks in record territory on Joe Biden’s first day as president" (analyst quotes and driver narratives).
As of Jan 20, 2021, according to MarketWatch: reporting on the historical context, including comparisons that highlighted the strength of the inauguration-day rally.
As of late April 2021, Business Insider and notes referencing JPMorgan research summarized short-term performance and first-100-days outcomes for markets following the Jan 20 inauguration.

Frequently asked short answers

Q: What was the stock market when Biden took office (short answer)?
A: On Jan 20, 2021 the major U.S. indexes closed at or near record highs—Dow ~31,188.38; S&P 500 ~3,851.85; Nasdaq ~13,457.25—driven by stimulus hopes, vaccine progress, and monetary accommodation (sources: Al Jazeera, NPR, CNN Business, MarketWatch).

Q: Did the market go up because of the inauguration itself?
A: Markets reacted to a confluence of factors around the inauguration. While the orderly transition reduced political uncertainty, analysts emphasized that fiscal policy prospects, vaccine rollout, and Fed policy were the primary economic drivers.

How to interpret the data

When digesting the answer to what was the stock market when biden took office, keep these interpretation points in mind:

Index closes are point-in-time snapshots and do not alone indicate causality.
Short-term market reactions can reflect forward-looking expectations; those expectations can change rapidly with new data or policy developments.
Comparisons across presidencies or dates require consistent normalization (e.g., total return vs. price return, inflation adjustments).

Closing notes and next steps

This article answered what was the stock market when biden took office by documenting the Jan 20, 2021 closing levels, describing the immediate drivers cited at the time, and offering context for short-term and longer-term interpretation. For traders and researchers tracking macro events and market reactions, consider using published market-data feeds and reputable research sources. To explore related market and crypto analytics, learn how Bitget’s research and tools can support your market monitoring needs.

If you want a concise data sheet listing the full session-level metrics (intraday ranges, sector returns, and exchange-level volumes) for Jan 20, 2021, request a market-data summary and we can prepare a downloadable snapshot sourced to primary exchange prints and the contemporaneous press coverage referenced above.

The content above has been sourced from the internet and generated using AI. For high-quality content, please visit Bitget Academy.