Around noon in New York, the index of thirty stocks rose more than 720 points or 2.62% to 28,200.13.
The S&P 500 – a gauge of the health of U.S. retirement and college savings reports – rose 3.16% while the high-tech Nasdaq Composite Index jumped 4.23% as investors have piled up in tech stocks – which have been outsized gainers this year.
The main Wall Street stock indexes ended higher on Tuesday in hopes that a clear winner would emerge from the US presidential race.
Polls showed President Donald Trump’s Democratic challenger Joe Biden had a substantial lead ahead of Tuesday’s vote, but as the night wore on it became clear that the race had tightened considerably in major states swing.
The race is now dependent on the vote count in Arizona, Georgia, Pennsylvania, Wisconsin, Michigan and Nevada.
President Trump has 213 electoral votes while Biden leads with 224. A candidate needs 270 electoral votes to secure the White House for four years.
The specter of a contested election intensified after President Trump tweeted, “We’re BIG, they’re trying to steal the election. We will never let them do it. Votes cannot be cast after the polls have closed! “
We’re BIG, but they’re trying to steal the election. We will never let them do it. Votes cannot be cast after the polls have closed!
– Donald J. Trump (@realDonaldTrump) November 4, 2020
But fresher faces reigned on Wall Street on Wednesday.
“The results are not yet clear, but so far President Trump has beaten polls in most states,” Alec Phillips, a Goldman Sachs analyst said in a note Wednesday morning.
A Democratic majority in the Senate also seems less likely, he added.
“For fiscal policy, Senate control is at least as important as the White House. With a narrow Republican majority in the Senate, we wouldn’t expect any major tax hikes, but also a fiscal stimulus package of less than $ 1 trillion, ”Phillips said.
Robard Williams, senior vice president of Moody’s Investor Services, said he was convinced that even a contested vote count would not inflict long-term damage to US credit markets.
“While the lack of an immediate conclusion to the electoral process may increase financial market volatility, we assume that U.S. institutions will eventually resolve delays in the vote count and any subsequent disputes over the results in a consistent manner. with the frameworks established around the rule of law without having a significant and lasting impact on credit, ”he wrote.
While the outcome of the US presidential race remains a cliffhanger, investors have clarity on a key measure of the California poll.
A blow to workers in the odd-job economy turned into a big win for Uber and Lyft after Californians overwhelmingly voted in favor of a voting measure exempting phone and phone services. delivery-based applications to classify drivers as eligible employees for employment benefits and protections.
This victory allows Uber and Lyft to preserve their business model which is based on the classification of drivers as independent contractors.
Shares of Uber were up 14.59% around noon in New York City, while shares of Lyft were up 12.37%.