Nasdaq index is skyrocketing amid split congress, Uber and Lyft soared
The tech-heavy Nasdaq index remained the best performers in post-election trading as shares of big tech stocks rose sharply on prospects of dividend legislative assembly.
Traders assume the clear majority for any side could make it easier for them to amend tech and social media laws.
Besides Nasdaq, other stock indices have also reported hefty gains on election results. Joe Biden is clearly winning the election but they don’t have a majority in the senate. Pharma and biotechnology stocks are also among the biggest winners in post-election trading.
The Wharton professor Jeremy Siegel said,
“A split Congress and a Biden presidency would be “excellent” for the economy and the stock market.”
Internet stocks support Nasdaq
Social media and internet stocks were under pressure over the past couple of weeks amid prospects that a clear majority to democrats could make it easier for Joe Biden to amend the laws.
Nasdaq index soared almost 4% in Wednesday trading and extended the upside momentum into Thursday trading. Shares of Apple jumped nearly 4% while Microsoft stock soared almost 5%.
Top internet stocks including Amazon, Facebook, and Alphabet reported high single-digit gains in Wednesday trading.
Just a week ago, executives from top internet companies including Google, Facebook, and Twitter appeared before Congress as lawmakers have been showing concerns over antitrust violations.
“People are going back to the playbook that works if the economy is more sluggish,”
said Keith Lerner, chief market strategist at Truist/SunTrust Advisory.
“When people get defensive about the economy, they buy tech.”
Uber and Lyft stocks reported double-digit gains
The shares of ride-hailing companies skyrocketed after Democrats gained a clear majority in California.
The people of California supported Proposition 22, a measure that would exempt drivers for app-based transportation and delivery companies from being classified as employees.
Uber stock price grew 14% while the shares of Lyft climbed 11% on the Democrats win.