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* Investors in Tech Rally bet on policy gridlock
* Increase in stocks related to solar, infrastructure, trade
* GM, Qualcomm rise after results
* The Fed is less likely due to poor election results
* Futures: Dow adds 1.32%, S&P 1.76%, Nasdaq 2.56% (comment, description, update price);
November 5 (Reuters) – Wall Street was set to jump on Thursday as investors bet on a Republican Senate that would take any steps by the Joe Biden administration to tighten regulation and raise taxes on corporate America. Will block, even call the presidential election was close.
Futures tracking the benchmark S&P 500 rose 2%, while Nasdaq 100 futures gained 2.6% after Wall Street’s main index closed higher than a week.
With President Donald Trump and his Democrat rival Biden still hoping for an election from the battlefield awaiting clarity, investors were returning to the original setting of the last decade: of additional monetary stimulus coming through the financial system Buying stock with flood.
Biden came close to winning the White House race on Thursday after winning Michigan and Wisconsin, but Democrats showed no possibility of winning the Senate, possibly making it difficult for the Democrat administration to rein in Big Tech and other businesses.
“Markets prefer divided government,” said Brian Levitt, Invesco global market strategist.
“Constant hands-on concerns over major issues and the prospect of higher taxes, a green New Deal, changes to the Affordable Care Act and much more seem to be for naught.”
Technology mega-cap stocks including Apple Inc., Amazon.com and Alphabet Corp, this year’s big “stay-at-home” benefiting from the coronovirus lockdown, set to add strong gains from Wednesday.
The VIX Volatility Index, which has risen in recent months as investors feared votes could fall in stocks, reached its lowest in three weeks.
Renewable energy, infrastructure, marijuana and trade-sensitive stocks, which analysts have identified as winning under the Biden administration, all rose to highs after a weak performance in the previous session.
But investors also demanded bond protection because the prospects of a bifurcated Congress of bumper fiscal stimulus packages are critical to supporting a damaged US economy. Coronavirus risks also increased with new American infections setting a daily record.
Trump filed the lawsuit, without evidence, and accused him of reconsidering, increasing the risk of weeks of partisan conflict.
Later in the day, the focus will be on the Federal Reserve’s latest policy statement after a two-day meeting, but is still uncertain with the final outcome of the election, with the central bank expected to help the economy Anything you can do, repeat it. .
As of 8:39 am, E-Minis was up 367 points or 1.32%, S&P 500 E-Minis up 60.5 points or 1.76% and Nasdaq 100 E-Minis up 301.25 points or 2.56%.
Qualcomm Inc. grew 14.3% after forecasting fiscal first quarter revenue above Wall Street as it forecasts sales of 5G smart phones that will balloon more than half a billion units next year.
Inspired by renewed demand for trucks and SUVs in the United States, General Motors Co expected a profit of over 5.6%.
Reporting by Medha Singh and Shivani Kumarasan in Bengaluru; Additional reporting by Sagarika Jaisinghani and Susan Mathew; Editing by Patrick Graham, Bernard Orr and Anil DeSilva