The US presidential election has yet to be decided, but that hasn’t stopped the stock market from heading to its best day after the election in over 100 years.
Dow Jones Industrial Average DJIA,
near the intraday high, up more than 705 points, or 2.6%, at 28,185 points near mid-Wednesday, which would represent the strongest daily gain to the 124-year-old benchmark since when returns of 3.33% increased after the 1900 presidential race won Republican President William McKinley over Democratic rival William Jennings Bryan.
Read: The Trump, Biden race starts overtime as the battlefield states balance: live blog
The 2020 race between President Donald Trump and former Vice President Joe Biden is still too close to call a day after Election Day. There seem to be many paths to victory for each candidate.
If Biden wins in Nevada, Michigan, and Wisconsin while Trump makes it through other prominent races, that would have left the Democratic opponent win a minimum of 270 electoral votes. Biden could also go up to 270 if it won the second electoral districts of Maine, Nevada, North Carolina and Wisconsin, as Trump seems likely to have declared other states not called.
See: Here̵7;s what we know about eight states where the Electoral College’s votes are not called
The tight race that offered a wide margin of victory was implied by the probe data that led to a race to the Oval Office. Those polls also point to a green wave leading Democrats to wipe out the White House and mostly not just the House but also the Senate.
While that result is not materialized, Wall Street is betting that Biden will win and Republicans will retain majority control in the Senate. That outlook is seen as positive for the stock market in the long term as it would limit Biden’s ability to raise corporate taxes, delay the Republican 2017 tax overhaul, and enact stricter regulations. more on industries including technology.
Meanwhile, the S&P 500 SPX,
climbed 3.2 percent and track its strongest Post-Election Day record gains, according to Dow Jones Market Data.
up 4.2%, which would also be the best gain in the index for the day after the presidential election was recorded. To be sure, the Nasdaq Composite was first published in 1971 and the S&P 500 in 1957, making both significantly younger than the Dow.
How much is the market’s response to an undecided election remains a riddle for many market participants. However, many traders are arguing that the stock market is a predictive mechanism that rarely trades simply on intraday news.