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A28 u.s. news
Diabierna 6 november 2020

Wall Street rallies again as stocks ride post-election wave

cratic sweep.
If Congress and the White
House can’t come to a deal,
the pressure rises on the
Federal Reserve to do more
to support the economy, if
it can. The central bank has
already slashed interest rates
to record lows and stepped
forcefully into the bond mar-
ket to prop up prices.
It will announce its latest de-
cision on interest-rate policy
in the afternoon. Investors
don't expect it to make any
major changes, at least not
yet.

The yield on the 10-year
Treasury rose to 0.78% from
0.77% late Wednesday. It had
been above 0.90% earlier this
week, when markets were
still thinking a Democratic
sweep was possible that could
lead to a big stimulus package
for the economy.

The pandemic continues to
weigh on economies around
the world, with counts ris-
ing at troubling rates across
much of Europe and the
United States. Several Eu-
ropean governments have
brought back restrictions on
(AP) — Stocks are still they have through the pan- why the markets are per- But concerns about any big businesses in hopes of slow-
riding Wall Street’s post- demic and for years before forming well.” changes in tax policy during ing the spread.
election wave Thursday, that. Rising expectations that Stocks climbed across Eu- the next administration have
as markets bet on the Republicans can hold onto ropean and Asian markets mostly abated now that con- In the U.S., even if the strict-
continuation of several the Senate are easing inves- Thursday. trol of Congress looks as if est lockdowns from the
business-friendly policies, tors’ worries that a Demo- it will remain split, said Me- spring don’t return, the wor-
and the S&P 500 is rally- cratic-controlled Washington Wall Street's rally was wide- gan Horneman, director of ry is that the worsening pan-
ing 1.9% toward its biggest would beef up antitrust laws spread, with nearly 90% of portfolio strategy at Verdence demic could change consum-
weekly jump since April. and go after Big Tech more stocks in the S&P 500 higher. Capital Advisors. ers’ behavior enough on its
aggressively. Qualcomm jumped 13.3% own to undercut companies’
Markets are banking on for the biggest gain in the “History tends to tells us that profits. And that's a potential
Tuesday's election leading Apple, Microsoft, Amazon, index after it reported stron- investors like gridlock be- risk heading into the holi-
to split control of Congress, Facebook and Google’s par- ger revenue and profit for cause there’s really not a big day shopping season, which
which could mean low tax ent company were all up the latest quarter than ana- chance of legislative surpris- many retailers rely on to bulk
rates, lighter regulation on between 0.7% and 2.9%. lysts expected. That's been es,” she said Split control of up sales for the year.
businesses and other poli- They’re also the five biggest the strongest trend through Washington also carries po- “The underlying economic
cies that investors like remain stocks in the S&P 500 by this earnings season, which tential downsides. Gridlock situation is going to drive
the status quo. The election market value. is close to wrapping up. S&P may lessen the chances of the whatever happens in the eq-
still hasn’t made clear who Broadly, markets are seeing 500 companies are on pace U.S. government coming to- uity markets,” Horneman
will run the White House split control of Congress as to report a drop in profits of gether on a deal to deliver a said.
next year, though Joe Biden a case of what Mizuho Bank roughly 8% from year-ago big shot of stimulus for the
is pushing closer toward the calls “Goldilocks Gridlock.” levels. That's much milder economy, for example. In London, the FTSE 100
needed mark. Investors see cause for op- than the nearly 21% decline rose 0.4% as England began
timism if either Biden or Wall Street was forecasting at That’s something inves- a four-week lockdown that
The S&P 500 is on pace for its President Donald Trump ul- the start of last month. Still, tors and economists have will keep closed all shops sell-
fourth straight gain of more timately wins the presidency, many analysts warn volatil- been asking for since the last ing items deemed to be non-
than 1%, and a 7.3% jump for and what they want most of ity may lie ahead. Big swings round of benefits for laid-off essential, such as books and
the week. That would be its all is just for a clear winner to could return as the threat of workers and other benefits clothes. The Bank of Eng-
best week since the market emerge. “Equities fear uncer- a contested, drawn-out elec- expired. A report on Thurs- land increased its monetary
was exploding out of the cra- tainty rather than the actual tion still looms. day showed that more work- stimulus by more than ex-
ter created in February and outcome,” strategists at Bar- ers filed for unemployment pected to help the economy
March by panic about the clays wrote in a report. Trump’s campaign has filed last week than economists weather the new measures.
coronavirus pandemic. legal challenges in some key expected, though the num-
The Dow Jones Industrial But the expectation that swing states, though it’s un- ber was slightly better than In Paris, the CAC 40 gained
Average was up 483 points, Biden has a chance of win- clear whether they can shift the week before. 1.2%, while Germany’s DAX
or 1.7%, at 28,331, as of 12:47 ning has also raised hopes the race in his favor. A long returned 2%.
p.m. Eastern time, and the that U.S. foreign policies court battle without a clear Investors are still hoping In Asia, Hong Kong’s Hang
Nasdaq composite was 2.2% might be “more clear,” said winner of the presidency Washington can agree on Seng gained 3.3%, Tokyo’s
higher. Jackson Wong, asset manage- could raise uncertainty and more stimulus for the econ- Nikkei 225 climbed 1.7%,
ment director of Amber Hill drag down stocks, analysts omy, though they say it likely South Korea’s Kospi rose
Technology stocks were Capital. He added, “investors say. won’t be as big as it could 2.4% and stocks in Shanghai
helping to lead the way, as are cheering for that. That’s have been following a Demo- added 1.3%.