U.S. stocks jump on bets for split U.S. Congress, as the Federal Reserve Board is steadily holding

Investors bet that the Republican Party would retain control of the Senate and prevent major policy changes under Joe Biden Whitehouse, which could undermine corporate profits, so U.S. stocks Soared on Thursday.

Investors have abandoned their cautious pre-election positioning and raised all major Wall Street indices four times in a row, as votes are still being counted in the battlefield states.

Fiscal stimulus is widely expected, but the magnitude of transactions achieved in the split parliament can be much smaller than expected. This could put more money into the financial system and put pressure on the Federal Reserve Board to support stock prices.

Stock prices have risen temporarily further since the Fed’s statement on Thursday. The central bank has promised to keep loose monetary policy intact and do whatever it can to maintain a severely hit economy again. Coronavirus Pandemic. At a press conference after the statement, Chair Powell said the Fed would not consider funding direct fiscal activities.

Biden was approaching victory after winning in Michigan and Wisconsin, but his Democrats seemed unlikely to win in the Senate. This has eased investors’ concerns about tightening regulations on Big Tech and raising corporate taxes.

“They stayed at what the market expected. I think there are concerns about the economy and the trajectory of the economy. But basically, I don’t think they surprised the market. In Newark, NJ. Quincy Crosby, Chief Market Strategist at Prudential Financial, said:

“Given the election scenario where you are still counting votes, it would be very difficult for the Fed to insert itself at this point.”

However, some market participants have warned that the market is unlikely to be shocked, as it is still uncertain whether Congress will remain split.

Informally, the Dow Jones Industrial Average rose 542.85 points (1.95%) to 28,390.51, the S & P 500 rose 66.97 points (1.94%) to 3,510.41, and the Nasdaq Composite Index rose 300.15 points (2.59%). ) It rose to 11,890.93.

This week’s rally marked a maximum four-day percentage increase for each of the three major indexes in almost seven months.

High-tech-heavy tech-heavy winners of “stay-at-home” companies under this year’s blockade are surprised to see a record high on September 2, rising well over 2%. It was about the distance.

The Philadelphia SE Semiconductor Index soared to a record high. Meanwhile, technology has given the S & P 500 the greatest boost.

The VIX volatility index, which has risen in recent months, hit its lowest in three weeks, with all 11 major sectors of the S & P 500 showing widespread gains and investors fearing that voting could cause stock prices to fall.

The material index also reached a record high, boosted by rising stock prices of US-German industrial gas producer Linde.

Qualcomm Inc surged after forecasting first-quarter sales to exceed expectations as chip makers forecast strong growth in 5G smartphone sales next year.

U.S. stocks jump on bets for split U.S. Congress, as the Federal Reserve Board is steadily holding

Source link U.S. stocks jump on bets for split U.S. Congress, as the Federal Reserve Board is steadily holding

Related Articles

Back to top button