Democrat Joe Biden’s 2020 US presidential candidate pointed at his election rally, after press reports that Mr. Biden had won the 2020 US presidential election, at Wilmington, Delaware, United States, November 7, 2020.
Kevin Lemarque | Reuters
The stocks were set to resume the massive post-election rally as futures rose in Sunday overnight trading. According to NBC predictions, the profit is achieved when Democrat Joe Biden defeated the incumbent Donald Trump in the US presidential race to become president-elect.
Dow Jones industrial average futures rose 268 points, showing the opening up about 230 points on Monday. S&P 500 futures rose 1.0 percent and Nasdaq 100 tenors rose 1.3 percent.
The former vice president won out after his expected win in Pennsylvania as well as Nevada, as predicted by NBC News on Saturday. The call came four days after Election Day and amid the most recent numbers in several battlefield states.
Wall Street hopes the call will reduce the likelihood of a protracted election war, even if Trump refuses to give in. Many traders have been betting on the volatility of the market in November and have removed those positions, helping fuel a bull run.
Meanwhile, the likelihood of a “green wave” sweeping the majority Democrats in both the Senate and the House of Representatives has weakened, meaning there’s less chance of drastic policy changes like tax increases. .
Brian Levitt, global market strategist at Invesco, said: “A Biden’s presidency with the Republican Senate is unlikely to raise taxes. “And a Biden presidency could mean a return to a more traditional, more predictable approach to trade policy, which could lead to less volatile markets.”
Democrats are expected to keep a majority of their House of Representatives, though Wall Street is watching closely as Senate control is still in limbo. Both Georgia’s Senate races are likely to take the lead as early as January.
Wall Street rallied in the past week in anticipation of such a deadlocked government and is set to build on that rally as it gains clarity in the presidential race. All three major averages have recorded their best weekly performance since April. The S&P 500 and Nasdaq rose 7.3 percent and 9 percent respectively last week, while the Dow rose 6.9 percent. The S&P 500 also posted the biggest increase in election week since 1932.
Technology was the biggest winner last week among 11 S&P 500 sectors, up 9.7%. Investors flock to the high-growth group as the prospects for higher taxes and stricter regulations under Democratic pursuit decline.
Trump rejected the results
Stock futures surged even as Trump refused to admit the election, declaring that as early as Monday his team would start “prosecuting our case in court to secure election laws. dispatch is fully complied with. “
The President and his representatives have launched lawsuits in many key states, including Pennsylvania and Michigan, and have signaled that they plan to promote recounting in some near races.
Biden is expected on Monday to announce members of its coronavirus task force, who will be responsible for formulating a plan to curb the spread of coronavirus when it reaches record highs.
According to Johns Hopkins University data, the United States has reported more than 126,000 new coronavirus infections for two consecutive days and has reported a new record increase in the number of daily cases over the past four days.
Adam Crisafulli, founder of Vital Knowledge, said: “As the focus on the election begins to fade, investors will start to pay more attention to Covid as the cases continue to explode and Europe brings a series of mitigation measures, ”Adam Crisafulli, founder of Vital Knowledge, said in a note on Sunday. “Vaccine prediction has helped to protect stocks from ugly virus headlines.”
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