US stocks futures rose on Sunday as investors had a chance to react to predictions of President Joe Biden’s victory.
Dow Jones futures rose 349 points, or about 1.2%. S&P 500 futures rose about 1.5 percent and Nasdaq futures rose 2.1 percent.
The higher gains came after stocks ended Friday barely changed. The Dow fell 67 points, or 0.2%. S&P 500 and Nasdaq were flat.
Wall Street had been expecting a Biden victory as the elections appeared to have tilted toward Democrats throughout the past week. But investors can now react with more certainty: CNN predicted Saturday that Biden will become President of the United States as the path to victory in Pennsylvania appears to give him enough electoral votes.
While the race for control of the Senate is still in equilibrium – more likely there will be Senate elections in Georgia – investors are also expecting Republicans to take over. Such an outcome would allow for more modest tax and regulatory policies.
Video: Election news quickly eclipsed the worse Covid-19 crisis (CNN)
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“That’s what’s going on in the Senate race that can determine the next move up or down,” said Michael Hewson, chief market analyst at CMC Markets. “If that looks like it could change during the January bull run then you might see some weakness in certain parts of the stock market in case Democrats achieve their desire for their blue wave. “
Markets in Asia Pacific also gained points on Monday. South Korea’s Kospi Index rose 1.3%, while Hong Kong’s Hang Seng Index rose 1.2% and China’s Shanghai Composite Index rose 1.1%. Japan’s Nikkei – which has been trading at its highest level in nearly three decades – rose 2.1%.
Outside the US, markets will look for signs that the Biden administration will take a more diplomatic approach to international trade negotiations than President Donald Trump, according to Margaret Yang, is strategic. of DailyFX.
A “new chapter for US foreign policy … is important to the world and of particular interest to export-oriented economies such as China, Mexico, [European Union] and Japan, “Yang wrote in a note on Monday.
Looking ahead, investors will prepare morale for the next move of the US president-elect. On Saturday, Biden announced in his winning speech of his plan to assemble a team of coronavirus task forces that would assist in helping curb the spread of the virus. Biden will announce the names of those in its task force on Monday, two sources familiar with the matter told CNN. The number of coronavirus infections has increased with more than 50 million Covid-19 cases reported worldwide.
“What we need in the US right now is someone who can actually control the coronavirus outbreak,” said Naeem Aslam, head of market analysis at AvaTrade. give them this guarantee “.
Despite Biden’s victory, investors remain concerned about how Trump will react to election failure in the coming weeks.
“One inexplicable variable is that President Trump is becoming more erratic and more volatile in the next ten weeks,” said Brad Karp, president Paul, Weiss, Rifkind, Wharton & Garrison LLP. “There’s nothing to say what he might be trying to do and inability to predict how the market might react.”