Elections 2020: US stock markets are shining , Nasdaq up 3.5%
The vote counting is in progress but US stock markets have started shining as initial results show Democrats candidate Joe Biden is leading with 213 electoral votes. The challenger Joe Biden needs to win 270 electoral votes to move into the White House.
President Trump secured 118 electoral votes but Trump is leading in vote counts. He has secured 49.8% of votes while the Democrats candidate gained 48% of votes.
US stock markets are shining as results trigger in
The Dow Jones Industrial Average, which is mostly correlated to the economy, reported the biggest daily gain as tens of millions of Americans polled their vote for the next president.
The index has been sustaining gains with futures up 1.6%.
The electoral votes show that Joe Biden will be the new president of the United States. Markets assume that Biden’s win could result in massive stimulus packages for American businesses.
Traders also believe that the democrat’s win could help in soothing the trade war issues that Donald Trump has created in the past four years.
The S&P 500 index has also been trading in green over the past 24 hours as traders are expecting Democrats to win.
NASDAQ future jumped 3.5%
NASDAQ stock futures rose more than 3.5%, triggering the ‘dynamic circuit breakers’. The futures are shining for tech stocks amid Biden’s clear lead in electoral votes. Previously, stock futures trading triggered limits several times amidst the COVID-19 crash.
Some market analysts believe as results have started clearing the political scenario, the election-related volatility is ending – which is supporting the tech stock rally.
“This most recent uptick in prices seems to be a ‘clarity rally’ as investors look forward to finally having the election uncertainty overhang removed,”
Adam Crisafulli, founder of Vital Knowledge, wrote in a note Tuesday.