Election 2020: Stocks Jump In Reaction To Vote Count Results
Stocks rose at market open, at 9:30 a.m. ET on Wednesday, and NBC News gave former Vice President Joe Biden 227 electoral votes and 213 to President Donald Trump. As of 3 p.m. on Wednesday, those numbers changed to
Wall Street is the enemy of uncertainty, but the markets have not shown heightened signs of panic thus far; However, the possibility of delayed or contested results could yield volatile days ahead. In the race to 270 votes, the Associated Press placed each candidate in a tight race on Wednesday morning as the country awaits further results in the coming days.
States called for Trump: Ky., W. Va., S.C., Ala., Miss., Tenn., Okla., Ark., Ind., N.D., S.D., Wyo., La., Neb. (4 of 5 electoral votes), Kan., Mo., Idaho, Utah, Ohio, Iowa, Mont., Fla., Texas
States called for Biden: Vt., Va., Conn., Del., Ill., Md., Mass., N.J., R.I., N.Y., N.M., D.C., Colo., N.H., Calif., Ore., Wash., Wis., Hawaii, Minn., Ariz., Maine.
Investor sentiment is unstable right now, as averages reversed gains in off-hours when President Trump falsely announced that he had won the election at 2:21 a.m. ET at the White House. “This is a fraud on the American public ...This is an embarrassment to our country. We were getting ready to win this election. Frankly, we did win the election,” he said. Equity indices opened higher in the overnight session; However, the Dow and S&P slowed gains when the race appeared closer.
Stocks returned when investors woke up Wednesday to Biden taking a slight lead in critical states such as Michigan. About 30 minutes after the opening bell Wednesday, the S&P 500 rose 2.3%, tech-heavy NASDAQ rose 3.3% and the Dow rose 1.7%.
“We’re in somewhat of a holding pattern in the markets amid the election uncertainty, aside from the big moves in tech this morning. We’d caution anyone from reading too much into tech’s rise as a predictor of who will take the oval office — could be driven by the increasing likelihood of a divided Congress, which puts a damper on hopes for increased regulation against this sector," Mike Loewengart, managing director of investment strategy at E*TRADE told CNN Business.
This year’s presidential election can create turmoil in industries and financial markets; however, Wall Street had its best day since early June on Tuesday, as initial vote counts gave Biden a lead in the polls.
Despite gloom financial predictions, the market seems optimistic about election results and will continue to fluctuate as states report their vote counts. The possibility of a contested election places grave implications on the economy; the market will have to mitigate the impact of COVID-19 and political turmoil on businesses and citizens.
