Stock futures rise slightly after Tuesday’s rally as traders await U.S. election results

first_imgElection officials count absentee ballots at a polling place located in the Town of Beloit fire station on November 03, 2020 near Beloit, Wisconsin.Scott Olson | Getty Images – Advertisement – This week’s market moves come as investors hoped a delayed, or contested, U.S. presidential election result would be avoided and a clear winner would emerge Tuesday night.“This most recent uptick in prices seems to be a ‘clarity rally’ as investors look forward to finally having the election uncertainty overhang removed,” Adam Crisafulli, founder of Vital Knowledge, wrote in a note Tuesday.Former Vice President Joe Biden held a 10-point lead nationally over President Donald Trump, according to an NBC News/Wall Street Journal poll released Sunday. Wall Street is also watching some key Senate races, which could lead to Democrats taking control of Congress.- Advertisement – Stock futures rose slightly on Tuesday night following a sharp rally during regular trading while investors awaited the result of the presidential election.Dow Jones Industrial Average traded 131 points higher, or 0.5%. S&P 500 futures gained 0.4% and Nasdaq 100 futures advanced 0.3%.Earlier in the day, the Dow popped more than 500 points, or 2.1%. The S&P 500 gained 1.8% and the Nasdaq Composite advanced 1.9%. Those gains added to Monday’s strong performance.- Advertisement –center_img Investors are betting that a so-called blue wave — a scenario in which Democrats win the White House, obtain a Senate majority and keep control of the House — could facilitate the passing of new fiscal stimulus as the economy continues its recovery from the coronavirus pandemic.“I think that no matter who wins, you have a quick dip and you have to buy,” CNBC’s Jim Cramer said earlier on Tuesday.The S&P 500 lost 0.4%, on average, the day after presidential elections, according to Baird.Chao Ma of the Wells Fargo Investment Institute thinks investors with a longer time horizon should not worry too much about the election’s impact on the broader market.“The history of the economy and the S&P 500 Index suggests that a president’s party affiliation has made little difference when it comes to long-term returns,” said the firm’s global portfolio and investment strategist. “The long-term drivers of the S&P 500 index have been the economy and business earnings, and we expect that to continue to be the case … beyond the 2020 elections.”One year out from a presidential election, the S&P 500 averaged a return of more than 8%, according to the Baird data back to 1960.Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world. – Advertisement –last_img

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