“Currently the consensus is that a Blue Wave scenario (Democrats hold the House and win the Senate and White House) will lead to a much bigger stimulus package next year,” Zaccarelli wrote, “which would be good for the short term stock market. although it will also lead to an increase in corporate and personal income tax. “
For the first time in history, more than 100 million Americans voted before election day. The massive increase in early and postal voting, with many voters seeking to avoid crowded polling stations, has reshaped how and when most ballots are counted, creating uncertainty as to when the results will be known. According to the Washington Post national poll average on Tuesday night, Democratic candidate Joe Biden led President Trump from 52% to 42%. The former vice president held a bigger lead than Hillary Clinton in 2016, before her surprise loss to Trump.
After jumping 300 points at the opening, the Dow Jones industrial average closed the day higher by more than 550 points, just over 2%, at 27,480. The S&P 500 Index closed higher more 1.8% to 3369. The tech-heavy Nasdaq 100 – beaten by recent brutal sales in major techs – rose 1.8% to 11,160.
The optimism was shared abroad. Asian markets all closed in positive territory, with the Hong Kong Hang Seng Index and the Australian ASX 200 both gaining nearly 2%. Japan’s Nikkei 225 and the Shanghai Composite Index both climbed around 1.4%. At noon, European indices were all positive, led by the French CAC and UK FTSE 100, both of which were up more than 2.3%.
“It’s a firm risk attitude for investors as stocks rise in Europe and Asia,” said Russ Mold, chief investment officer at AJ Bell, in comments emailed to The Post. “Investors seem to be enjoying a victory for Joe Biden in the US presidential elections and there is a high likelihood that he will have a more favorable trade policy with China and the EU.”
Chinese regulators on Tuesday announced the suspension of financial technology giant Ant Group’s $ 37 billion public offering, which was slated for Thursday and is expected to be the world’s largest IPO. In a statement, the Shanghai Stock Exchange cited “major issues” that could cause it “to fail to meet listing conditions or disclosure obligations” following a meeting with Jack Ma, billionaire co-founder of the society. Ant Group is the financial arm of e-commerce giant Alibaba.
Investor ease was reflected in the yield of the 10-year US Treasury note, which climbed 0.888% on Tuesday morning, approaching its highest level since June as investors seek riskier territory. Bond yields move inversely with prices.
Even oil markets, which have been volatile as further restrictions on movement raise fears of wider lockdowns, were stable on Tuesday. Brent, the international oil benchmark, traded up 2.67% to $ 40.01 per barrel. West Texas Intermediate crude, the US oil benchmark, was trading up 2.8% to $ 37.84 per barrel.
The rally reflects a thirst for change amid the ongoing public health crisis and uneven economic recovery, Chris Rupkey, chief financial economist at MUFG Union Bank said on Tuesday in comments emailed to the Post.
“History is repeating itself where four years ago Dow industrialists rallied Monday and Tuesday in the November 8 presidential election, and now stocks are up Monday and Tuesday again this year before Election results did start to spread after the stock market closed today. Rupkey wrote. “Actions are coming together today in the hope of a better future.”