Nasdaq and S-P 500 futures rise as Trump secures leadership in three key countries.

0

Nasdaq and S&P 500 futures are climbing, while Trump is securing leadership in three key countries.
U.S. tech giants, including Amazon and Apple, saw a 2% increase in pre-market trading.
The major US banks printed a decline of 1.1% to 2.5% early Wednesday.

The S&P 500 and the Nasdaq future rallied on Wednesday in anticipation of close competition for the US presidency. Trading became volatile as President Donald Trump led the way in a few key countries.

So far, both candidates, Biden and Trump, have made statements claiming that they are on track for victory after several states announced results.

S&P’s e-mini futures were reported down about 1.15% on Wednesday, but later (10:54 GMT) recovered to trade 0.5% higher. The US Dollar Index also fell on Tuesday as traders predicted a Biden victory.

U.S. tech giants gained 2% in trading ahead of the market

Trump took the lead in Texas, Ohio and Florida, which virtually destroyed the prospect of Biden’s decisive early victory. However, when he won three important Rust Belt states, Biden was confident that he was well on his way to being elected the new president of the United States.

Investors are eagerly awaiting the final result of the presidential election as it will accelerate the decision on a stimulus package to support the U.S. economy, which has been severely affected by the coronavirus pandemic in recent months.

U.S. technology giants, including Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL) and Nvidia (NASDAQ: NVDA), saw a rise of over 2% in pre-market trading on Wednesday. Investors are predicting that the technology mega-caps under Biden will face a greater threat from antitrust investigations than under Donald Trump.

Some stocks from the marijuana, renewable energy and infrastructure sectors were down nearly 7% in early trading on Wednesday. These stocks are expected to celebrate Biden’s victory. According to multi-asset strategist Kiran Ganesh

“In general, the blue wave Biden move is favorable for mid-sized companies, cyclical stocks and stocks exposed to emerging markets trading, so people need to quickly return to secular growth stocks and some of the traditional energy stocks.

Major U.S. banks printed a decline of 1.1% to 2.5%

The political uncertainty also led to the biggest drop in 10- and 30-year bond yields in one day since June. As a result, the major US banks printed a 1.1% to 2.5% decline in the stock market in early Wednesday.

At 10:54 GMT the Dow e-minis had fallen by about 0.11% (31 points) and the Nasdaq 100 e-minis by 2.42% (272.25 points).

In the U.S. Senate, the Republicans secured five of the most contested of a total of fourteen races, indicating that they are more likely to retain their majority in the upper house.

The S&P 500 has won almost 57% since the Trump victory over Democrat Hilary Clinton in 2016. The information technology index has risen massively by 149% during this period, while the energy index has fallen by 56%.

Share.

Leave A Reply