This is the key to the stock market, which hates uncertainty. Do not know the winner for many days is known by investors as “nightmare scenario”;.
Financial markets are continuing to hope – and then hopefully dashed – for more fiscal stimulus from Washington for months now, and investors are expecting a big package. under the administration of the Democratic Party.
“I think [the market is up on] Two things: some re-investigation from last week[‘s losses]But I also think that whoever wins, there will be some short-term money coming, whether it’s stimulus or infrastructure, “said JJ Kinahan, market strategist at TD Ameritrade.
The US economy has already started on a long way to recover, but economists and central bankers agree that more government spending will be needed to sustain improvements.
Meanwhile, President Donald Trump said Tuesday morning on “Fox & Friends” that he believes the market is bullish because investors are pricing in another term for him.
Trump has repeatedly said that the market would sell off if Biden was elected, although market participants dismissed this argument because of the expected government spending to spur the recovery.