Wall Street jumps as Americans head to polls

In this news, we discuss the Wall Street jumps as Americans head to polls.

(Reuters) – Major Wall Street indices surged on Tuesday as investors bet one of the country’s most controversial presidential races could end with a clear victory for Democratic candidate Joe Biden and a quick deal on more stimulus budgetary.

The top 11 S&P indices were higher in the morning, led by .SPSY Financials, .SPXHC Healthcare and .SPLRCI Industrials, as investors also held back some of the post-vote volatility bets that dominated these. last weeks .VIX.

Not all infrastructure and other stocks that analysts identified as likely winners in a Democratic sweep were up, with marijuana and renewable energy companies down, some as high as 4%.

However, Biden’s lead in national opinion polls has raised expectations for a decisive outcome in Tuesday’s election and a post-election stimulus package that heeds his pledges for infrastructure spending.

“There is some optimism that we might have an early resolution in the election,” said Ryan Detrick, senior market strategist for LPL Financial.

“The market is going to accept a few days (late), but if we get to Friday and it looks like it will take longer than that, it could upend the markets and we could lose a lot of those big gains.”

Democrats are also favored to come out of 14 hotly contested US Senate races with full control of Congress, although the final results of at least five of those contests may not be available for days, and in some cases, results. month.

Yet competition in dynamic states is considered close enough that President Donald Trump can muster the 270 Electoral College votes he needs to stay in the White House for another four years.

U.S. stock index futures plunged on election night 2016, when it emerged that Trump was increasingly likely to secure a thwarted victory over then-Democratic candidate Hillary Clinton. The benchmark S&P 500 has since risen 55% as lower tax rates under the Trump administration boosted corporate profits.

(GRAPHIC: “Biden” stocks vs “Trump” stocks -)

Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh, said a Biden victory could lead to some inflation, which would be beneficial for banks in particular.

“A Federal Reserve has committed to keep rates lower while allowing not a flat curve but a curve with some steepening, then a little inflation and you get a hip hurray for the banks.”

The S&P .SPXBK banking sub-index jumped 3.3% to its highest level in more than a week, while industrials shares such as Caterpillar Inc CAT.N and Honeywell International Inc HON.N rose by more than 2% each.

As of 11:40 a.m. ET, the Dow Jones Industrial Average .DJI was up 680.43 points, or 2.53%, to 27,605.48, the S&P 500 .SPX was up 78.26 points, or 2, 36%, at 3388.50. The Nasdaq Composite .IXIC rose 243.11 points, or 2.22%, to 11,200.72.

The rising problems outnumbered declines of 5.64 to 1 on the NYSE and 3.99 to 1 on the Nasdaq.

The S&P Index recorded 25 new 52-week highs and no new lows, while the Nasdaq recorded 38 new highs and 17 new lows.

Report by Medha Singh in Bengaluru; Additional reports by Sruthi Shankar, Susan Mathew and Noor Zainab Hussain; Editing by Sagarika Jaisinghani, Anil D’Silva and Shounak Dasgupta

Original © Thomson Reuters

Originally posted 2020-11-03 18:46:10.

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