Shares opened sharply higher before facing some volatility and paring some of the gains.
Investors believe that a Biden win could also mean less news and major risks for stocks in the near term.
“If the polls are nearly correct, Joe Biden will comfortably win the election and we will know that before midnight tomorrow,” said Andy Labrier and Don Schneider of Cornerstone Macro.
“We have emphasized that the Senate outcome is important to the course of fiscal policy,” City economist Andrew Hollenhurst said in a note to clients, although neither side is likely to get a blocking majority, so bipartisan cooperation is still needed. . For the next stimulus bill.
“In any electoral scenario, we expect a financial package of $ 1.5 trillion in addition to a financial package, perhaps as soon as after the election,” Hollenhurst said.
Congress has been stuck negotiating a second stimulus deal since the summer. Investors have been waiting for the results, and have become wary of any headlines around the progress. What this really tells us is that markets believe the US economy needs more help to get back on track as the effects of the CARES Act run out.
Millions of Americans still need government benefits to make ends meet, and that’s bad news because the US economy relies so heavily on consumer spending.
And as if these elections and their aftermath weren’t enough for investors to contemplate, the week is also filled with important economic reports, including the October jobs report.