(For a Reuters live blog on the US, UK and European stock markets, LIVE / or type / click in the live window)
* Tech rally resumes as investors see US policy gridlock
* Qualcomm’s growth after results
* Fed repeats the “policy (whatever it takes” policy) (across prices, updates prices, market activity and comments, adds Fed statement; adds new bylines, new york datelines)
NEW YORK, Nov 5 (Reuters) – US stocks jumped on Thursday as investors bet that Republicans would retain control of the Senate and potentially prevent any major policy changes under the Joe Biden White House that could reduce corporate profits is.
With votes still to be counted on the battlefield, investors were leaving cautious pre-election positions, driving all of Wall Street’s main indices for a fourth straight season.
Although the fiscal stimulus package is widely expected, the size of any deal in a divided Congress is likely to be much smaller than anticipated. This in turn will put pressure on the US Federal Reserve to pump more funds into the financial system, thereby supporting more purchases of stock.
The stock received an additional extra boost from the Fed’s statement on Thursday. The central bank retained its loose monetary policy and resolved to do whatever it could to maintain an economy severely damaged by the coronovirus epidemic.
Biden was approaching victory after winning Michigan and Wisconsin, but his Democratic Party was unlikely to win the Senate. This reduced investor is concerned about Big Tech and strict rules on a corporate tax hike.
Michael Arron, chief investment strategist at State Street Global Advisors in Boston, said, “Staying in the rally longer, it works for me but in some ways investors may be willing to marginalize themselves.”
“Things are never as good or as bad as they seem, but markets are running quite strongly in the post-election environment.”
Aron cautioned that it was not yet certain that the Congress would remain divided, so there was a slim chance that the market could suffer a setback.
The Dow Jones Industrial Average rose 575.05 points or 2.06% to 28,422.71, the S&P 500 rose 77.76 points, or 2.26%, to 3,521.2 and the Nasdaq Composite rose 310.07 points, or 2.68%, to 11,900.85.
The tech-heavy Nasdaq, packed with “stay-at-home” corporate winners under this year’s lockdown, gained more than 2% and was within striking distance of its Sept 2 record closing high.
The Philadelphia SE Semiconductor Index rose 4.38% to an all-time high, while technology and communications services made gains in the S&P index.
All of the major S&P 500 sectors went higher in a wide rally, and the VIX Volatility Index, which has risen in recent months as investors feared the vote could fall in stocks, the lowest in three weeks done.
The ingredients index also touched a record, with shares of US-German industrial gas producer Linde gaining 6.55%.
Qualcomm Inc. reported a 13.08% increase in revenue from fiscal first quarter revenue in the first quarter, as it predicted solid growth in 5G smart phone sales next year.
Advancing issues declining on the NYSE in the ratio of 4.93 to 1; On the Nasdaq, a 3.23-to-1 ratio favored advisers.
The S&P 500 posted 72 new 52-week highs and no new lows; The Nasdaq Composite recorded 149 new highs and 19 new lows.
Reporting by Chuck Mikolajack; Editing by David Gregorio