The 2020 US Democratic presidential candidate, Joe Biden, points an accusing finger at his rally, after the media announced that Biden had won the 2020 US presidential election, in Wilmington, Delaware, USA, November 7, 2020
Kevin Lemark | Reuters
Equities were due to continue their big rally after the election as futures rose in overnight trading on Sunday. The winnings came as Democrat Joe Biden beat incumbent Donald Trump in the US presidential race to become an elected president, according to NBC estimates.
Dow Jones Industrial Average futures rose 220 points, implying an opening gain of nearly 200 points on Monday. S&P 500 futures rose 0.9% and Nasdaq 100 futures rose 1.4%.
The former Vice President won after his expected victory in Pennsylvania as well as Nevada, According to NBC News Saturday forecast. The call came four days after Election Day, amid close statistics in many of the conflicting states.
Wall Street had hoped the call would reduce the likelihood of a drawn-out election battle, even as Trump refused to compromise. Many traders had placed their bets on the market volatility in November and canceled these positions, helping to add to the rally.
Meanwhile, the chances of a “blue wave” sweeping through Democrats in most of the Senate and House of Representatives have diminished, which means that the likelihood of drastic policy changes such as raising taxes is becoming less likely.
“It is unlikely that the Biden presidency with a Republican Senate will see any tax increase, which is arguably the biggest investor concern about the Biden presidency,” Brian Levitt, a global market analyst at Invisco, said in a note on Sunday. “The Biden presidency could mean a return to a more traditional and predictable approach to trade policy, which has the potential to lead to less volatile markets.”
Democrats are expected to maintain their majority in the House of Representatives, although Wall Street has been closely monitoring the Senate control remains in limbo. The replays in each of the Georgia Senate races will likely take place in early January.
Wall Street rebounded last week in anticipation of such a blocked government, and is set to build on this rally as it gained clarity in the presidential race. The three major averages delivered their best weekly performance since April. The S&P 500 and Nasdaq indices jumped 7.3% and 9% respectively last week, while the Dow is up 6.9%. The S&P 500 also posted its biggest election week gain since 1932.
Technology was the biggest gainer last week out of 11 sectors of the S&P 500, rising by 9.7%. Investors crowded into the high-growth group as the likelihood of higher taxes and tighter regulations decreased as Democrats sweep.
Stock futures gained even Trump refuses to waive the elections, He pledged that as soon as Monday, his team would “start following our case in court to ensure full compliance with election laws.”
The President and his agents have launched lawsuits in multiple major states, including Pennsylvania and Michigan, and indicated that they are planning Press recount in some close races.
Biden is expected to come on Monday To advertise members From the Coronavirus Task Force, which will be tasked with drafting a plan to limit the spread of the coronavirus as it reaches record levels.
I mentioned the United States More than 126 thousand new cases of coronavirus Two days in a row, there has been a new record daily increase in cases every day over the past four days, according to data compiled by Johns Hopkins University.
“As the focus on elections begins to fade away, investors will start paying more attention to Covid as the issues continue to spread and Europe puts in place a series of mitigation measures,” Adam Chrisafuli, founder of Vital Knowledge, said in a note on Sunday. “Anticipating the vaccine helped protect stocks from ugly virus headlines.”
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