US futures fell on Thursday night as Wall Street saw its best week since April even as the presidential election results are still unclear.
Dow Jones Industrial Average futures lost around 115 points, while the S&P 500 and Nasdaq 100 indices were both down about 0.5%.
The three indices recorded a fourth consecutive positive session on Thursday and are on track for their best week since April 9. The S&P 500 and Dow are up 7% so far this week. The technology-heavy Nasdaq Composite took the lead with gains of almost 9%. Strong rebound after last week̵7;s drop.
The rise in stocks came despite lingering uncertainty over Tuesday’s election outcome. Democrat Joe Biden leads the way with 253 electoral votes, according to NBC News predictions, while President Donald Trump has 214. Votes are still being counted in several key states including Nevada, Arizona. , Pennsylvania and Georgia.
Wall Street strategists contend Republican treasures in some of the key Senate races, thereby lowering the likelihood of a “green wave” and higher tariffs and regulations. more aggressively, has been cited by Wall Street strategists as the reason for the rise in technology stocks. However, Republicans have yet to gain the seats needed to control the Senate, according to NBC News predictions, with two upcoming elections in Georgia.
Alicia Levine, chief strategist at BNY Mellon Investment Management, says the possibility of Democrats gaining narrow control in the Senate is one of the major risks that cannot price the market even if the flight fails. necessarily cause the market to decline.
“The market is currently valuing Biden’s presidency with the Republican Senate, and the rotation we see based on that,” Levine said. “And if there is an increasing risk that that doesn’t happen to the Senate, then the whole move could be somewhat risky.”
Levine also says that the strength of technology stocks is partly due to strong earnings performance and their resilience in the event of new economic constraints in the United States during winter to slow the spread of coronavirus.
Republicans have submitted a series of legal challenges in several states regarding the ongoing counting of votes, and Trump’s campaign said it would require a recount in Wisconsin.
In a statement from the White House on Thursday night, Trump falsely declared victories in some states and charged voter fraud without evidence, saying “there are a lot of lawsuits Overall because of how unfair the process. “
Meanwhile, the Biden campaign has called for all votes to be counted.
“Democracy is messy sometimes. It also requires a bit of patience sometimes,” the former vice president said in a brief speech in Delaware on Thursday, adding that he believed his ticket would be declared. Dad is the winner when all votes are checked.
Economically, Friday will bring a fresh look at the labor market for investors, with the Labor Department’s October employment report slated to come out ahead of the bell. The report comes after disappointing results on ADP’s private payroll and initial unemployment claims.