The stock exchanges in New York started trading with gains on Wednesday. Investors ‘eyes on Wall Street are entirely on the United States’ presidential election, where Democrat Joe Biden and incumbent President Donald Trump remain in a neck-and-neck race.
The financial markets especially hoped that if Biden made a profit, he would soon come up with a larger package of support to help the American economy through the corona crisis.
Shortly after the opening bell, the Dow Jones index recorded 0.8 percent higher at 27,694 points. The broad-based S&P 500 was moved 1.4 percent higher at 3,416 points, and tech exchange Nasdaq gained 2.5 percent to 11,434 points.
The Senate will likely remain in Republican hands while the House of Representatives will remain Democratic. With that, a quick corona support package, which the market was hoping for with a win from Biden, seems unlikely.
Tech companies are benefiting because the so-called Blue Wave has likely failed to materialize. In doing so, the Democrats would take over the presidency, the Senate and the House of Representatives. The chance that strict rules will be introduced for tech companies is now estimated to be much smaller. Companies such as Facebook, Amazon and Apple all showed significant pluses.
Taxi services Uber and Lyft gained nearly 13 percent. California voters voted in favour of a bill to amend a law that would force companies to treat their directors as employees. This result allows them to maintain their current practice in which drivers are treated as independent entrepreneurs. That saves the companies a lot of money.
Weapon manufacturers show a mixed picture now that there is still uncertainty. Sturm Ruger and ammunition maker Vista Outdoor opened about 4 percent in the min, Smith & Wesson Brands lost nearly 5 percent. It is expected that there could be a run on guns if Trump loses. Biden would like to limit the possibility to buy weapons.