By Medha Singh
(Reuters) – US stocks soared on Tuesday as investors bet that one of the country’s most divisive presidential races will end with a clear win for Democratic candidate Joe Biden and a quick deal on more financial stimulus. All 11 major S&P indices rose in early trading, led by financial, healthcare and industrial stocks. Analysts and portfolio managers say Biden̵7;s lead in national opinion polls has sparked hopes for a decisive outcome in Tuesday’s elections as well as a package. Greater post-election stimulus, analysts and portfolio managers said, even as both campaigns are preparing for post-election disputes. Chris Bailey, strategist Raymond James in London, said: “The market is expecting not only a clear Biden win, but also a fairly consistent policy response that will come with a financial spending. more.
Democrats also favorably emerged from the 14 fierce races in the US Senate with full control of Congress in Tuesday’s election, though final results from at least five it may not be available for days and in some cases months.
However, competition in the conflicting countries is seen as close enough that President Donald Trump can pool the 270 Electoral College votes he needs to stay in the White House for another four years.
Despite the coronavirus incident earlier this year, the S&P 500 index has risen about 55% since Trump won a nasty win in 2016 when lower tax rates under his administration fueled gains. corporate profits.
Graphics: Stocks “Biden” vs. “Trump” – https://fingfx.thomsonreuters.com/gfx/mkt/yzdpxabbovx/biden%20vs%20trump%20shares.PNG
The CBOE volatility index, known as a measure of investor fear, retreated for a second day after hitting a 20-week high last week due to rising coronavirus cases globally.
Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh, said a win in Biden could lead to some inflation, which would benefit banks in particular.
“The Federal Reserve is committed to keeping interest rates lower but not allowing a flat curve but a curve that has some strong impact on it, and then some inflation and you will get some relief. Warmly welcome to the banks. “
The S&P banking sub-index rose 2.6% to its highest level in more than a week, while the industrial index Caterpillar Inc (NYSE 🙂 and Honeywell International Inc (NYSE 🙂 each increased by about 2%.
By 10:11 a.m. ET, the index was up 553.70 points, or 2.06% to 27,478.75, the S&P 500 up 57.67 points, or 1.74% at 3,367.91, and increased 171.87 points, or 1.57%, at 11,129.49.
Technology stocks and media services, which have supported Wall Street’s rally from the March coronavirus drop, were among the smallest gainers.
Arista Networks (NYSE 🙂 Inc was up 18.6%, among the top gainers on the S&P 500 benchmark, after the network equipment maker reported better-than-expected quarterly earnings.
PayPal Holdings Inc (NASDAQ 🙂 reported better-than-expected quarterly results, driven by an increase in digital payments. However, its shares fell 3.1% after more than doubling in value since March.
The advancers outnumbered losers 7.52-1 on the NYSE and 5.34-1 on the Nasdaq.
The S&P index recorded 14 new 52-week highs and made no new lows, while the Nasdaq recorded 33 new highs and 11 new lows.