The shares prolonged their gains for a moment the day before Tuesday’s election in the hopes that a victory for Democratic presidential challenger Joe Biden and a Senate that approves Democrats would mean a bigger aid package for financially devastated Americans. for the COVID-19 pandemic.
“It turns out there’s a very high probability of a Democratic Senate,” says Chris Zaccarelli, chief investment director of the Independent Advisor Alliance.
The Dow Jones trading average rose 554. 98 points, or 2. 1%, to close at 27,480. 03.
The party that controls the Senate is likely to be more critical of the length of any relief measure than the fact that Biden or President Donald Trump is in the White House, Zaccarelli says. Senate Republicans, he says, have blocked more physically powerful aid. While Biden’s victory would possibly mean more federal aid, Trump has demonstrated his willingness to provide a package.
Lawmakers have been stuck in the law for months. The Democratic-controlled house passed a $2. 2 trillion measure in September, and Senate Republicans pushed for a $500 billing package. The White House proposed a $1. 8 trillion bill in one last adjustment effort. to succeed in an agreement before the election, however, it is unclear whether Senate Republicans would agree.
Any program would provide more relief to unemployed Americans, troubled businesses, and financially troubled states and cities.
“What matters to investors is to put a stimulus package in the hands of the American people,” Zaccarelli says, noting that cash is needed for customers and the economy after a $600 weekly federal supplement to unemployment benefits that expired in late July. .
The S-Index
Wall Street’s two days of earnings helped the S
“The markets are neither red nor blue and are decidedly green,” said Rod von Lipsey, managing director of UBS Private Wealth Management. “There is a sense that we might have some clarity about the outcome of the direction of one or two pranksters who have moved the market. “
The 10-year Treasury yield rose to 0. 87% from 0. 84% due Monday.
On European stock markets, the French CAC 40 rose 2. 4% and the German DAX by 2. 6%. London’s FTSE 100 won 2. 3%.
In Asia, South Korea’s Kospi rose 1. 9%, Hong Kong’s Hang Seng by 2%, and Shanghai shares by 1. 4%.
Contribute: The Associated Press