Joe Biden appears to have won the U.S. Presidential Election after vote counts show the former Vice Present turning key battleground states including Pennsylvania and Georgia over the weekend.
Despite pending legal challenges from President Trump’s campaign and unproven claims of voter fraud, the stock market seems to be responding well to the latest developments.
Ahead of market openings this Monday, stock market futures were strong, and we could be in for a week of more gains on the major indexes.
Futures Up Ahead of Monday Trading
On Sunday evening, Dow Jones futures were up by 349 points or 1.2%, suggesting strong growth for this major index today. S&P 500 futures were also positive, up around 1.5%.
By early Monday morning, NASDAQ futures were showing the most promise, increasing by 2.1%.
If stocks can advance today, it will be good news for investors. Markets remained mostly flat at the end of last week when it appeared that both Biden and Trump had clear pathways to victory. Since then, Biden gained the Majority in Pennsylvania, a critical battleground state, as well as in Georgia, a state that hasn’t been won by a Democrat since Bill Clinton’s successful campaign in 1992.
Asian Shares Performed Well on Monday Morning
Asian stock markets, which are linked heavily to U.S. trade, are often indicators of what could happen stateside at the beginning of each week. For investors that look to Asian stocks for guidance on Mondays, there’s good news to be found.
The Asia Dow was up by 65 points or 1.86% after midday. Japan’s Nikkei 225 index was up by 2.55%, and China’s Shanghai index was up by 1.90%.
The strong performance in these markets doesn’t necessarily reflect any preference for the winner of the U.S. Presidential Election. Investors in Asian markets are more concerned about certainty and a clear path forward. Now that the election is all but decided, the world can focus on other issues like the ongoing Coronavirus Pandemic and the economic impact that it will continue to have.
The Election Wasn’t Bad for U.S. Stocks
Last week, the Dow Jones Industrial Average (DJIA) grew by almost 7% from Monday to Friday. The S&P 500 rallied by 7.3%. There was some intraday volatility, but investors appear to be happy with the outcome, despite America remaining heavily politically divided.
Legal proceedings and election recounts in the coming days and weeks could stir up the markets, but, at least for now, American equities are in a strong position, with a new President likely to be in the White House by January next year.
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