Election officials count absent ballots at a polling place located at the Beloit Town fire station on November 3, 2020 near Beloit, Wisconsin.
Scott Olson | beautiful images
Stock futures surged on Tuesday night after a sharp surge in regular trading while investors awaited the results of the presidential election.
Dow Jones Industrial Average futures are 230 points higher, or 0.8% higher. S&P 500 futures rose 0.7 percent and Nasdaq 100 futures rose 0.5 percent.
Georgia, Indiana and Kentucky are among the states where polls are scheduled to close at 7pm ET. In Pennsylvania and Florida – two key battlefield states – the polls are expected to end at 8pm ET.
Traders added risk on other markets during the night. The US oil futures price increased by 2%, while the 10-year term decreased.
At the beginning of the day, the Dow rose more than 500 points, or 2.1%. The S&P 500 rose 1.8 percent and the Nasdaq Composite rose 1.9 percent. Those profits added to Monday’s strong performance.
The market movement this week comes as investors expect delayed or controversial U.S. presidential election results to be avoided and a clear winner will emerge on Tuesday night.
Adam Crisafulli, the founder of Vital Knowledge, wrote in a note on Tuesday: “This most recent price increase appears to be a ‘clear rally’ as expected investors have finally eliminated get somewhat of the electoral uncertainty “.
Former Vice President Joe Biden took 10 points ahead of President Donald Trump nationwide, according to a poll by NBC News / Wall Street Journal released on Sunday. Wall Street is also watching some key races in the Senate, which could lead to Democrats taking control of Congress.
Investors are betting that a so-called green wave – a scenario in which Democrats gain the White House, have a majority in the Senate and retain control of the House – could facilitate the passage of through new financial stimulus when the economy continues to recover from the coronavirus pandemic.
“I think whoever wins, you quickly drop the price and you have to buy,” said Jim Cramer of CNBC.
According to Baird, the S&P 500 index loses an average of 0.4% a day after the presidential election.
Chao Ma of Wells Fargo Investment Institute argues that investors with longer periods should not worry too much about the impact of the election on the broader market.
The company’s global portfolio and investment strategist said: “The history of the economy and the S&P 500 Index shows that a president’s party affiliation makes little difference when it comes to speaking. to long-term profit. “The long-term drivers of the S&P 500 are the economy and business earnings, and we expect that to continue to happen … after the 2020 election.”
A year after the presidential election, the S&P 500 averaged a return of more than 8%, according to Baird data from 1960.
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