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Stock futures spike as the election results hang in equilibrium



Stock futures fluctuated between bullish and bearish Wednesday as investors became interested in the 2020 election results, so far there has been no clear indication of a winner for Home. White.

At around 5 a.m. ET, the S&P 500 was 0.6 percent higher and the Nasdaq outperformed with a gain of more than 2.7 percent. The Dow fell about 50 points.

The results so far suggest a presidential race is still too close to call, with a number of battlefield states as a result, including Pennsylvania, still unable to produce a result for the next few days.

As of 4:45 a.m. ET, former Vice President Joe Biden had 238 electoral votes and President Donald Trump had 21

3, according to the Associated Press. The candidates require 270 electoral votes to be called the winner of the election.

  • Countries calling for Trump: Ky., W. Va., SC, Ala., Miss., Tenn., Okla., Ark., Ind., ND, SD, Wyo., La., Neb., Kan., Mo., Idaho, Utah , Ohio, Iowa, Mont., Fla., Texas

  • The states calling for Biden: Vt., Va., Conn., Del., Ill., Md., Mass., NJ, RI, NY, NM, DC, Colo., NH, Calif., Ore., Wash., Hawaii, Minn., Ariz., Maine (3 out of 4 electoral votes)

A series of results came stirring up volatility during the overnight session. Contracts on major stock indices open higher as overnight trading begins, but gains in Dow and S&P 500 futures go flat as the race tightens, including when the Associated Press predicts Trump will win in Florida, which some experts believe will go to Biden. Other states once considered upside down ultimately leaned toward Biden, including Arizona, which Trump won in 2016.

However, the Nasdaq contract has increased significantly. At around 10:15 p.m. ET, Nasdaq futures surged by almost 4 percent to trigger a circuit breaker to limit further gains. The index held 2.5% higher at around 4:45 a.m. ET, with traders flocking to tech stocks that throughout the vast majority of the pandemic served as a haven. safety amid uncertain economic outlook.

In the bond market, US Treasury yields have dropped to the long end of the curve to largely dampen their gains from a few weeks ago. Ten-year yields fell below 80 basis points, as investors withdrew expectations of a Democratic sweep likely to yield greater government spending.

Abroad, European stocks also traded with volatility and slippage at the opening before cutting losses and pushing higher, after Trump announced an early election win in a speech at night. late at the White House.

“This is a fraud against the American republic. This is a shame for our country, ”Trump said. “We are ready to win this election. To be honest, we won this election. “

Trump, who has previously challenged the veracity of voting by mail, said he would “go to the US Supreme Court” about the results of the election, opening up the possibility of a withdrawn election. Out, the disputed electoral market participants were prepared for entry to the results. Biden’s election campaign, for his party, has hinted that they will be ready to fight Trump in court.

Deutsche Bank analysts, including Jim Reid, said: “Surprisingly so far, the market hasn’t really priced at much risk, or is concerned about a long war ahead.” “The current fiscal stimulus looks much longer than last night,” they added.

But other experts warn that prolonged uncertainty over election results could cause continued volatility in the market in the coming days.

Analysts from the BlackRock Investment Institute wrote in a note Wednesday morning: “A new result may take a few days or more, potentially fueling market volatility and leaving the possibility of a Dispute results. “We want to look at any volatility and stay in high confidence positions during any risky asset sell-off. There is a possibility that low trading volume during this period may increase the market’s ability to move.

The election took place against the increasingly serious pandemic situation in the United States. More than 93,000 cases were reported nationwide on Monday, with the second highest daily total since the onset of the coronavirus pandemic, according to data cited by the New York Times. A total of more than 9 million cases have been recorded since the beginning of the pandemic in the US, and more than 230,000 deaths across the country. And the economic consequences of the virus have been very serious: Approximately 11 million jobs have been lost since the pandemic began, and unemployment is as high as 8%.

4:50 am ET Wednesday: Stock futures are volatile with uncertain election results

These are the major moves in the market, as of 4:50 a.m. ET Wednesday

  • S&P 500 futures (ES = F): 3,382.75, an increase of 21.25 points, or 0.63%

  • Dow Futures (YM = F): 27,342.00, down 34 points, or 0.12%

  • Nasdaq Futures (NQ = F): 11,552.00, up 286.25 points, or 2.54%

  • Rough (CL = F): + 0.58 USD (+ 1.54%) to 38.24 USD / barrel

  • Yellow (GC = F): – $ 17.50 (-0.92%) to $ 1,892.90 per ounce

  • 10 year treasury (^ TNX): -8.5 bps to generate 0.796%

The White House is visible at sunrise on election day, in Washington, USA, November 3, 2020. REUTERS / Hannah McKay TPX PHOTO OF THE DAY
The White House is visible at sunrise on election day, in Washington, USA, November 3, 2020. REUTERS / Hannah McKay TPX PHOTO OF THE DAY

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