Turns out the free market isn't a fan of a Democratic socialist.
After Bernie Sanders announced he was dropping out the race for president on Wednesday morning, stocks across every industry surged.
The Dow Jones Industrial Average jumped almost 600 points. This is less than 24 hours since the Dow suffered its worst intraday reversal since the financial crisis.
The S&P 500 also rose by 2.2 percent.
Health insurance stocks rose by as much as 6 percent following the announcement that Sanders was no longer in the race for president.
Sanders' socialist policies would destroy much of the free market, redistributing wealth through high taxes and eliminating incentives for future wealth creation.
More details below:
Bernie ran on radical platforms such as forgiving all student loan debt, where borrowers voluntarily signed contracts to take on the debt.
He also wanted medicare for all, which would have brought the United States one step closer to a single payer system.
While many have accused Trump of exploding the national deficit, some predictions state that Bernie's policies would have cost up to $50 trillion just for health coverage alone.
Fox Business reports on the surging stock market after Bernie's drop from the race:
U.S. equity markets rallied to session highs Wednesday with the S&P 500 exiting its bear market as Sen. Bernie Sanders suspended his presidential campaign. Stocks also saw support from a surge in oil prices.
The Dow Jones Industrial Average gained over 779 points, or 3.4 percent, while the S&P 500 rose by 3.4 percent as well and Nasdaq Composite 2.6 percent.
Sanders, I-Vt., suspending his campaign leaves former Vice President Joe Biden as the likely nominee to take on President Trump in the November election. It also opens the door for several females to potentially become Biden's running mate, as reported by FOX Business' Charlie Gasparino who lists Amy Klobuchar and Kamala Harris as front runners.
Another supporting factor for equities was oil. West Texas Intermediate crude oil rose 6.18 percent to $25.09 a barrel ahead of Thursday’s key meeting between OPEC and its allies. S&P energy stocks gained nearly 7 percent helping lift the broader index.
Additionally, FOX Business reported the IRS is speeding up printing of stimulus checks which could be delivered as soon as next week, earlier than the Treasury Department's April 17 initial date.
The major averages had posted smaller gains earlier Wednesday amid optimism that hospitalizations related to the COVID-19 pandemic are beginning to plateau in some of the hardest-hit areas of the country. President Trump on Tuesday evening said parts of the economy could be opened in the not too distant future.
It is clear that the stock market surge was a direct response to the news that Sanders would be ending his bid for the White House.
USA Today confirms that former Vice President Biden is seen as more friendly to the free market than Bernie Sanders:
A strong showing by former Vice President Joe Biden in the Democratic primaries buoyed investors who view him as a more business-friendly alternative to Sanders, a strong critic of Wall Street.
Many investors feared a Sanders nomination as the Democratic presidential candidate because of his policy proposals on health care and the economy, which analysts warned could crimp profits at insurers and other companies. Shares of health insurers Anthem, Humana and Cigna rose 6%, 4.5% and 3.8%, respectively.
“News that Senator Sanders has dropped out of the presidential race is not that surprising given the large lead that Senator Biden enjoyed over him,” Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, said in a note. “Normally the news that Biden is now the presumptive nominee would likely have been viewed as net-positive for the market, however, this was already the assumed outcome and was likely 99% priced into the market already.”
As the U.S. economy suffers from the COVID-19 pandemic, the surging stock market is a sigh of relief for many investors, especially those close to retirement.
See some of the reactions from social media users below:
The United States was able to become the wealthiest nation in the history of the world thanks to its free market.
Yet Bernie Sanders focused his campaign by flaming the tensions of class warfare.
He once railed against "millionnaires and billionnaires," but then suddenly only railed against the "billionnaire class" after he became a millionnaire himself.
Sanders was even called out during one of the debates by Mike Bloomberg for owning 3 homes.
Most Americans only have one home... or rent their living space.
Investors Business Daily has more on the health industry's response to Sanders leaving the race:
The S&P 500 Managed Health Care index, which had fallen as Sanders’ signature policy proposal, Medicare For All, became more popular, was up 4.7% shortly after the news surfaced.
Sanders noted some polls have shown many Americans favor a single-payer, government-run health insurance program. This would have challenged a number of health insurance companies that sell health plans to employers.
In response to Sanders' announcement, shares of health insurance companies broadly surged 4.9%. The medical-managed care industry group ranks No. 16 out of 197 groups tracked by Investor's Business Daily.
Among the biggest gainers, Molina stock ramped up 8.5%, near 152, and Anthem stock jumped 5.6%, near 236.60. UnitedHealth Group (UNH), the biggest health insurance company in terms of market cap, saw shares rise 3.7%, near 257.20.
During last year's State of the Union address, President Trump promised that we "would never become a socialist nation."
If today's stock market and status of the democratic primary has anything to say about it, that promise looks like it may very well come to fruition.
For the sake of our economy, let's hope so!