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On Wednesday (4) the results of the US general elections in several states were announced one after another. The VIX panic index plummeted more than 20%. Gold fell and the 10-year US Treasury yield hit its lowest level since April.
Even if the new owner of the White House is still undecided, the possibility of a split in Congress has increased enormously. Tech and healthcare stocks drove the market higher. All four major indices closed red. The Dow Jones closed with more than 300 points and the S&P closed with more than 2%. The Nasdaq and rates rose more than 3.5%, their best gains since the US election in history.
Before the deadline, Biden had received 248 electoral votes, temporarily ahead of Trump by 214 votes. On Wednesday, Byland continued to reverse some of the changing state elections. After Michigan, Biden won the state of Wisconsin. Biden’s campaign team stated that Biden is expected to defeat Trump in the 2020 general election and will pass the electoral threshold on the same day. Out of 270 electoral votes.
At the same time, Trump’s group asked Wisconsin to re-verify the votes and filed a lawsuit asking Michigan to stop the vote count. Trump tweeted: “Many undecided states have magically disappeared one by one.” The result of the vote is unfair and the legal battle is about to begin.
In the Congressional elections, following an unexpected victory in Maine, the Republican Party won 48 Senate seats and temporarily beat the Democrats (47 seats) by one seat. By contrast, the House of Representatives is the Democratic Party, and the Democratic Party has already won. 203 seats, the Republican Party has 188 seats.
Senate Majority Leader McConnell said economic stimulus measures will be the Senate’s top priority before the end of 2020.
The global epidemic of new corona pneumonia (COVID-19) continues to have a fever. Before the deadline, according to real-time statistics from Johns Hopkins University in the United States, the number of confirmed cases worldwide has exceeded 47.5 million and the number of deaths has exceeded 1.21 million . The cumulative number of confirmed cases in the United States exceeds 9.39 million and the cumulative number of deaths exceeds 232,000.
Seven of S & P’s 11 sectors closed with gains, led by healthcare, communications services and information technology, while materials, utilities and finance led the decline. (Image: Finviz)
The prospect of a possibly divided Congress will avoid raising taxes and regulations, benefiting tech stocks. The big five tech giants soared on Wednesday.
Apple (AAPL-US) rose 4.08%; Microsoft (MSFT-US) was up 4.82%; Amazon (AMZN-US) rose 6.32%; Alphabet (GOOGL-US) was up 6.09%; Facebook (FB-US) rose 8.32%.
The constituent shares of Dow Jones closed higher. United Health (UNH-US) rose 10.33%; Pioneer Heavy Industries (CAT-US) fell 7.43%; the sales force (CRM-US) increased by 5.74%; Microsoft (MSFT-US) was up 4.82%; Merck (MRK-US) rose 4.81%; Dow Chemical (DOW-US) fell 4.68%.
The actions of half of Fei’s components rose sharply. AMD (AMD-US) was up 6.23%; Intel (INTC-US) was up 1.90%; Micron (MU-US) was up 1.72%; NVIDIA (NVDA-US) was up 5.95%; Qualcomm (QCOM-US) was up 2.81%.
Only Chunghwa Telecom finished lower on Taiwan’s stock ADR. UMC ADR (UMC-US) was up 3.91%; TSMC ADR (TSM-US) was up 1.96%; ASE ADR (ASX-US) rose 2.35%; Chunghwa Telecom ADR (CHT-US) fell 0.29%.
The results of the California referendum were released Wednesday. Uber (UBER-US) and Lyft (LYFT-US) do not need to list their drivers as regular employees, avoiding the threat of increased costs. The two companies were up 14.69% and 11.28% respectively.
Election results have not yet been released and the infrastructure bill is still pending, investors have moved from cyclical stocks to tech stocks, causing Kaifeng Heavy Industries to drop 7.43%.
Andrea Cicione, head of strategy at TS Lombard, said that (in the first hours of negotiation) Trump’s re-election is more likely than expected and that the bipartisan Senate seats are more balanced, therefore less likely to be increase major changes like capital gains taxes or supervision. Reasons for a better performance of technological actions.
Alicia Levine, chief strategist at BNY Mellon Investment Management, said part of the current situation is that tech stocks have seen a sell-off before, and now tech stocks have rallied strongly, pushing the market for values up. Expected gains will increase with the prospect of further stimulus.
Growth stocks like technology outperformed cyclical stocks like banks and energy on Wednesday. David Joy, Ameriprise’s chief market strategist, said that even if we log into the main White House, it looks like we will be facing a divided Congress, so the chances of a significant change at the fiscal level are pretty slim, and this is the price reflected in the current market.
According to market participants, the chances of visiting the White House have increased considerably and trade tensions between the United States and China may diminish in the short term. Fed Chairman Bauer is expected to be re-elected. Monetary policy has strong continuity. The new fiscal stimulus of more than 2 trillion dollars is very likely to pass. It is expected to return to the peak before the epidemic, or even more.
