New York, November 9: The US stock markets on Sunday jumped higher by a few points as investors got an opportunity to respond to forecasts of a Joe Biden victory at the presidential elections. The three major indices surged by a few points. Dow Futures (INDU) shot up to 349 points or 1.2 points, S&P 500 (SPX) futures went up by 1.5% and Nasdaq was up by 2.1%.
Election Effect on Market
The surge in the indices emerged after markets remained mostly unchanged on Friday. While the Dow slithered 67 points or 0.2%, the S&P 500 and Nasdaq were just flat. Wall Street was already pining in for a Biden’s win. As the elections seemed to pitch in the favour of the Democrats throughout the past week. However, it is favourable that investors are now able to act in a certain manner and make thoughtful decisions.
Just like the presidential elections, markets have been somewhat full of surprises. In spite of uncertainties surrounding the White House race and elevated coronavirus cases globally, market sentiments were positive and stocks closed the week on a higher note.
Scenario After Election Stock Market
Interestingly, most of Wall Street had been expecting Biden to enter the White House. Hence paving the way for a generous stimulus that would help in an economic revival in a post-pandemic era.
While the markets now have a new narrative to weave industry, experts believe that a Democrat President, who prefers not to control the Senate will less belligerent towards the trade. But this might limit when it comes to defining the country’s fiscal policy. This implies that the Federal Reserve will have a more significant role, implying lower rates for a longer span of time.
Investors and industry experts are betting that the corporate and the personal will not shoot up at least till next year. And the central bank might choose to keep lower interest rates yet again for a longer period. The circumstance hereby adhering stocks to receive a shot in the arm.