BREAKING - S&P 500 Futures Rise as U.S. Election Suggests Less Regulatory Risk
WASHINGTON (Reuters) - U.S. stock market futures were marginally higher late on Wednesday as the presidential election race remained cloudy and the likelihood of gridlock in Congress made investors optimistic that major policy changes would be difficult to enact.
S&P emini futures were last up 0.1%, extending a rally in Wednesday’s stock market trading session. Nasdaq 100 emini futures rose 0.5%.
The Dow Jones Industrial Average rose 1.34% to end at 27,847.66 points, while the S&P 500 gained 2.20% to 3,443.44.
The Nasdaq Composite climbed 3.85% to 11,590.78.
It was the biggest daily percentage gain for the S&P 500 since June 5 and for the Nasdaq, since April 14.
Apple, Amazon and Alphabet surged over 4%, while Facebook jumped more than 8%, with investors betting Big Tech companies will face less antitrust risk under a divided Congress.
Investors said they favor a definitive, swift resolution of the presidential race that would clear the way for a deal on a stimulus package to revive the economy.
Shares of defense contractors Northrop Grumman, Lockheed Martin and Raytheon all rose on receding expectations of a cut in defense spending.
Big Pharma Pfizer, Merck & Co and Johnson & Johnson also climbed as the potentially split Congress was likely to shield the industry from sweeping reform. The NYSE Arca pharmaceutical index shot nearly 5% higher.
The CBOE volatility index, a gauge for short-term volatility, hit a two-week low after spiking to a four-month high in the run-up to the election.
Despite the rally in stocks, the potential for political uncertainty also sent investors to U.S. Treasuries, sparking the biggest one-day drop in 10- and 30-year bond yields since June.
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Edited 05 Nov 2020, 14:28
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