American securities investors are betting that the Republican-controlled Senate could stop Biden’s plans to raise taxes and tighten regulation if he wins the White House.
Wall Street’s key stock indices dragged on Thursday’s post-election rally as investors wagered that if Democratic presidential candidate Joe Biden wins the White House, plans to tighten His regulation and tax hikes will be blocked by the Republican-controlled Senate.
With presidential votes still being counted, the Dow Jones industrial average closed up more than 542 points, or 1.95 percent, at 28,390.18.
The S&P 500 Index – a measure of the health of the US retirement and college savings reports ̵1; rose 1.95%, while the Nasdaq Composite Index continued to climb sharply to close the session up 2 , 59%.
Presidential votes continued to be tabulated in five states – Alaska, Georgia, Nevada, North Carolina and Pennsylvania.
Biden is moving closer to securing 270 Electoral votes needed to win the White House. As of Thursday morning, Biden had 264 Electoral College votes compared to Trump’s 214.
Trump is taking the lead in Georgia, Pennsylvania and North Carolina and has called on those states to be called upon his will.
We have stated, for the purposes of Election of Electoral College, the Commonwealth of Pennsylvania (will not allow legal observers) The State of Georgia and the State of North Carolina, each with the BIG leadership of Trump . In addition, hereby, we ask the State of Michigan if, in fact,… ..
– Donald J. Trump (@realDonaldTrump) November 4, 2020
On Wednesday, the president wrote on Twitter that he had declared “for Electoral purposes” Pennsylvania, Georgia and North Carolina “each one of which has a BIG leadership of Trump”.
Trump’s campaign, which was accused of electoral fraud, filed a lawsuit against several states and called for a recount in Michigan.
While any delay to the election outcome could lead to weeks of party-to-party fighting, the government is likely to be highly divided even after Trump or Biden holds the keys of The White House for the next four years.
Democrats seem unable to win the Senate, which lowers expectations that the government will soon adopt a huge economic stimulus package to keep the economic recovery on track and create one. financial resources for millions of unemployed workers and small businesses that are struggling.
Republican Senate Majority Leader Mitch McConnell said on Wednesday he wanted a bill to bail out coronavirus by the end of the year.
But Wall Street analysts expect the next stimulus package to be much smaller than the $ 2.2 trillion that House Democrats are pushing.
The need for more help on Main Street was highlighted on Thursday after the US Department of Labor reported that the number of workers applying for new unemployment benefits from the states decreased slightly during the week. down to 751,000 people – still higher than pre-pandemic levels.
Federal Reserve Chairman Jerome Powell also said on Thursday that although the economy has made significant strides since being flung sideways by the pandemic, the rate of recovery is at “ moderate ”and economic growth and job creation are still far below pre-pandemic levels.
Among the stocks that caught the spotlight on Thursday:
Chip maker Qualcomm jumped 12.74% after its fiscal first-quarter revenue forecast was higher than Wall Street expectations because it predicted 5G smartphone sales to grow to more than half a billion units next year This is partly due to Apple’s new iPhone 12 models.