Wall Street up despite uncertain election results

  •   05/11/2020 - 13h13
  •   HARMANT Adeline

One might have expected a black day for the New York financial center, but it was not. On the contrary! Indeed and in front of the uncertainty which persists as for the result of the American presidential election, the stock exchange of Wall Street evolves ratheris in the green, with investors rather optimistic about the recovery of Joe Biden, the Democratic candidate, in the first estimates of results. Indeed, his campaign team has indicated that Biden is expected to win votes in Michigan, Wisconsin and Pennsylvania, which should result in more than 270 delegates, which, it should be remembered, is the threshold to be elected. But Donald Trump's campaign team disagrees, saying that if all the legal votes were counted, the outgoing president would be re-elected. Tension is therefore palpable between the two camps and it will no doubt be necessary to wait a few more days and resort to legal procedures to decide between Democrats and Republicans.

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Wall Street up despite uncertain election results

A US stock market that is moving higher on Wednesday :

It is however well in the green that the American session started this Wednesday November 03 and this, on all its stock exchange indexes. Thus, one could observe a rise of 2.30% of the Dow Jones at the opening to 28 112.67 points, a rise also of 2.99% of the S&P 500 to 3 469.94 points and a rise of 4.06% of the NASDAQ Composite and its technological values which was posted at 11 614.24 points.

During the morning of Wednesday's trading session, a brief suspension of trading on the Nasdaq 100 was observed due to a very significant increase in the futures contract of this index.

 

What are the stocks to follow in the next few days on Wall Street?

Of course, the political context remains very uncertain, analysts favour for the time being the stocks considered as the safest and in particular some stocks in the technology sector. Indeed, it can be observed that the major groups in this sector are the ones that benefit the most from the market craze with Apple, Amazon, Alphabet, Facebook or Netflix shares which rose by 2 to 4% on average yesterday.

Amazon is undoubtedly the big winner of this mid-week thanks to its e-commerce services which are exploding in many countries in the reconfinement phase. However, a Democrat victory could weigh on other stocks in the sector, which could be threatened by a tightening of antitrust policies.

However, the current challenge to the vote by Donald Trump could lead to high volatility in the equity market today for fund managers. Indeed, and because of this delay in clear election results, new stimulus measures by Congress could also be delayed and the reforms of the next US president could also be jeopardized.