(CNBC) -- Stocks surged on Wednesday after Sen. Bernie Sanders dropped out of the presidential race, relieving some of Wall Street’s political concerns amid the economic crisis stemming from the coronavirus.
The Dow Jones Industrial Average gained 700 points, or 3%. The S&P 500 climbed 3% while the Nasdaq Composite advanced 2.3%. 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, raised concern among several business owners and investors who feared taxes would go up under his presidency. Wednesday’s news puts former Vice President Joe Biden — who is seen by Wall Street as a more market-friendly candidate — closer to the Democratic nomination.
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