Dow gains 700 points, retakes 23,000

Clorox shares hit highest since early 1970s

U.S. stocks rallied on Wednesday, with the Dow jumping 779.71 points.

The rally came after Sen. Bernie Sanders dropped out of the presidential race, relieving some of Wall Street’s political fears amid the economic crisis due to the coronavirus.

The Dow Jones Industrial Average added 779.71 points, or 3.4 percent, to end at 23,433.57. The S&P 500 closed trading 3.4 percent higher to 2,749.98. The Nasdaq Composite gained 2.6 percent to 8,090.90. Hope the U.S. could start to turn a corner on the coronavirus outbreak in the near future also lifted equities.

Some of Sanders’ policy proposals, including Medicare for All, have raised fears among several business owners and investors as taxes would soar under his presidency. On the other hand, former Vice President Joe Biden is now seen by Wall Street as a more market-friendly candidate and is closer to the Democratic nomination.

“Sanders’ exit removes the tail risk of some of his policies, immediately sets up focus on Biden vs. Trump,” Ed Mills, Washington policy strategist at Raymond James, told CNBC.

“Biden’s policies will get a new scrutiny now he is the presumptive nominee, but the truth of the matter is that the market will be looking towards Washington more to help the economy and much of the assistance matches his platform.” Mills added.

Bleach maker Clorox has become a safe haven for investors at an uncertain time, its shares hit highs not seen since the early 1970s. Clorox shares jumped by more than 17 percent since the beginning of the year, bringing the company’s market value to $22.7 billion.