Markets rally even with U.S. race too close to call
Wall Street was off to the races Wednesday as investors began to pick winners in a world were political gridlock is the likely outcome from election night.
The battle between President Donald Trump and Joe Biden is too close to call...
but the so-called Blue Wave of a Democratic sweep never caught hold... suggesting the influence from fiscally-conservative Republicans, especially in the Senate, could keep a lid on Democratic priorities such as higher taxes and hefty infrastructure spending.
The tech heavy Nasdaq soared 4 percent right out of the gate with large-cap tech stocks like Apple and Amazon getting a boost.
CMC Chief markets analyst Michael Hewson:
"Tech stocks are doing well. They are outperforming and the reason they are outperforming is because, hey, look, no increased taxes, no higher regulation. So from that point of view, it's a win-win for tech. Potentially also a little bit of a win for the fracking sector as well, it'll be more likely the move towards renewables will be slower. But it won't change the underlying challenges facing the U.S. economy."
New data on the labor market served as a reminder of what's facing whoever wins the White House battle. Private payrolls grew by 365,000 in October, which was less than half of the hiring seen the month before, according to payroll processor ADP.
The labor market has gained back a little bit more than half of the 22 million jobs lost since March.
A hiring slowdown is one reason why investors see the need for more economic stimulus… even though given Tuesday's vote - that package is likely to be smaller than the Democrats have been seeking.
