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7:47 a.m. — Futures are pointing to a strong day for technology and the Nasdaq
The markets usually hate — and I mean hate — uncertainty of any kind during an election. In 2016, after it was clear that Trump had won, futures plunged by around 1,000 points before reversing course. So it’s a bit puzzling to see the opposite has occurred here. Although Dow futures briefly declined 400 points after Trump’s late night speech, the rest are in the green and pointing to what could be a strong trading day.
S&P 500 futures are up 0.57 per cent or 19 points, while Nasdaq futures have climbed more than 250 points or 2.29 per cent. Dow futures, meanwhile are still slightly negative.
As of now, the Senate looks like it’ll remain red. Oanda senior market analyst Edward Moya explained in a note this morning that that means Americans will likely not see tax hikes and tougher regulation — two of the key points in Biden’s platform that investors were worried about. They also won’t see massive stimulus spending, he said, and in that environment, the Nasdaq will continue to outperform as “the great cyclical rotation won’t happen anytime soon.”
