Wall Street surges on tech boost as presidential race remains undecided

In this news, we discuss the Wall Street surges on tech boost as presidential race remains undecided.

(Reuters) – Technology On Wednesday, stocks pushed major Wall Street averages higher as the White House race broke down, although investors remained concerned about the prospect of a contested outcome.

In a race that has been too close to call, President Donald Trump and Democratic candidate Joe Biden still have possible paths to achieve the 270 votes needed for the Electoral College to win as states continue to count an increase in ballots. postal vote.

Ten of the top 11 S&P indices were up in morning trading, led by the information technology and health sectors, as investors said Democrats’ chances of securing a big victory in the US Senate were diminishing.

“What emerges for me is that not much is going to change as a result of this election, even if Biden wins,” said Peter Kraus, a former Goldman Sachs executive who founded the asset management firm. Aperture Investments in 2018.

“The Senate is unlikely to tip over. Stimulus bills, infrastructure investments, large tax expenditures and tax changes end up in a rearview mirror rather than the front mirror. “

Trump won the battlefields of Florida, Ohio and Texas, but former Vice President Biden said he was confident and on track to win the White House by winning three key states of the rust belt.

Biden was also back as the frontrunner to win the election in online betting markets, according to data from three aggregators, after overtaking Trump in the state of Wisconsin.

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Investors said they were in favor of a final and swift resolution of the election as it would pave the way for an agreement on a stimulus package to help the damaged national economy. Analysts also said the market would be comfortable with a clear victory from Trump.

The NYSE FANG + TM Index, which includes core FAANG stocks, jumped 3.5%.

However, some infrastructure, renewables and marijuana stocks, seen as the likely winners of a Biden presidency, have fallen as much as 8%.

The CBOE Volatility Index, a gauge of short-term volatility, slipped to a two-week low after hitting a four-month high heading into the election.

Still, the prospect of political uncertainty pushed investors towards US Treasuries, causing the biggest one-day drop in 10- and 30-year bond yields since June. Shares of US banks, which typically track Treasuries yields, slipped 2%.

At 10:22 a.m. ET, the Dow Jones Industrial Average was up 632.64 points, or 2.30%, to 28,112.67, the S&P 500 was up 100.78 points, or 2.99%, at 3,469.94 and the Nasdaq Composite was up 453.66 points, or 4.06%, to 11,614.24.

Materials were the only S&P index in the red.

Rising issues outnumbered declines by a 1.67 to 1 ratio on the NYSE and Nasdaq.

The S&P Index recorded 38 new 52-week highs and no new lows, while the Nasdaq recorded 70 new highs and nine new lows.

Additional reporting by Shivani Kumaresan in Bengaluru; Editing by Saumyadeb Chakrabarty and Anil D’Silva

Original © Thomson Reuters

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