US stock market post-election rally continues on Joe Biden Win
US stock market has been generating substantial gains since November 2 election amid sentiments that Joe Biden would reduce the uncertainty in the global trade environment.
Joe Biden has officially declared the victory after he won Pennsylvania, bringing the total electoral vote count to 290. US stock market has been applauding Joe Biden’s win, with NASDAQ futures advancing more than 2.65% and the broader market index soared 1.82%.
US stock market like divided views
Although Republicans have lost presidential elections, they are still in a position to hold the majority in the senate.
Republicans won 48 senate seats while democrats secured 46 seats. The market participants claim that new legislation would become difficult for Joe Biden as Republicans hold the majority in the senate.
“It’s what happens in the Senate race that could determine the next move up or down,” said a chief market analyst at CMC Markets, Michael Hewson.
“If that looks as if it might change in the run-offs in January then you could see some weakness in certain parts of the stock market in the event the Democrats get their blue wave wish,” he added.
Tech stocks are making big gains
The divided parliament is in favor of big tech companies because both parties have a different view of the technology sector.
Nasdaq futures soared almost 2.61% in Monday trading. The tech-heavy index soared from 11000 points to almost 12200 points in the past seven days. The index is currently slightly below the all-time high of 12400 levels.
Internet stocks are among the biggest gainers as Donald Trump has recently announced to amend antitrust policies and other laws. Shares of Facebook jumped 12% in the last five days alone while Amazon and Apple also logged similar gains. The market analyst says the bullish trend is likely to extend into the coming months for social media stocks.