From the wsj’s “Stock Futures Rise Heading Into Election Day” posted early Tuesday:
U.S. stock futures Tuesday rose in the hours before many Americans head to the polls, capping an extraordinary election campaign that took place amid a pandemic, economic downturn and social unrest.
Futures tied to the S&P 500 climbed 1%, pointing to a second day of gains in U.S. stocks after the opening bell. The benchmark has surged 55% since the Election Day-close on Nov. 8, 2016.
The market is being buoyed partly by bets that former Vice President Joe Biden will win the White House, and Democrats at the same time will take control of Congress. That would make it more likely lawmakers will approve a generous stimulus package to spur economic activity under the new administration.
“The market sees a Biden win as the surest way to help mitigate Covid-19 and to get a positive outcome on stimulus talks,” said Paul Sandhu, head of multiasset quant solutions for the Asia-Pacific region at BNP Paribas Asset Management. “If any party holds the power of both the Senate, House and the presidency, that’s the surest win for a stimulus deal, and that scenario is easier to do with a Democratic leadership because they already have the House.”
My take: Who would have thought four years ago that Mr. Market would be bouyed today by the prospect of a Democratic sweep.