December 1, 2020

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Wins on Wall Street despite election uncertainty

Wins on Wall Street despite election uncertainty


Photo: ANP

The New York stock exchanges began trading in profits on Wednesday. Investors’ eyes on Wall Street are fully on the US presidential election, where Democrat Joe Biden and incumbent President Donald Trump continue to compete. The financial markets in particular hoped that if Biden made a profit, he would soon develop a larger support package to help the American economy through the corona crisis.

Shortly after the opening bell, the Dow Jones Index rose 0.8 percent to 27,694 points. The broadly based S&P 500 rose 1.4 percent to 3,416 points and the Nasdaq technology exchange rose 2.5 percent to 11,434 points.

The Senate is likely to remain in Republican hands while the House of Representatives will remain Democratic. A quick corona support package, which the market had hoped for with a victory from Biden, therefore appears unlikely.

Tech companies benefit from the fact that the so-called blue wave probably did not materialize. That way, the Democrats would take control of the Presidency, Senate, and House of Representatives. The likelihood of strict rules in place for tech companies is now estimated to be much lower. Companies like Facebook, Amazon and Apple all showed clear advantages.

The taxi services Uber and Lyft grew by up to 13 percent. California voters voted for a bill to amend a law that would force companies to treat their directors as employees. This result enables them to maintain their current practice of treating drivers as independent contractors. That saves companies a lot of money.

Arms manufacturers are now showing a mixed picture as there is still uncertainty. Sturm Ruger and ammunition manufacturer Vista Outdoor opened around 4 percent per minute, Smith & Wesson Brands lost almost 5 percent. It is expected that if Trump loses, there may be an exchange of fire. Biden wants to restrict the ability to buy weapons.