From the wsj’s “Stock Futures Rally After Biden Wins Presidency” posted early Monday:
U.S. stock futures rose Monday after Democrat Joe Biden’s electoral victory gave markets fresh impetus.
Futures tied to the S&P 500 gained 1.3%, suggesting that last week’s advance, the strongest since April, will resume after the New York opening bell. Contracts linked to tech-heavy Nasdaq-100 climbed 1.7%.
The new leg of the rally in stocks reflects the reduced uncertainty surrounding the U.S. elections, combined with expectations that a Democrat-controlled White House and divided Congress could result in moderate policy measures on taxes and spending.
“The market-friendly bits of Biden will be in place: the lack of volatility, more clear foreign policy,” said Altaf Kassam, head of investment strategy for State Street Global Advisors in Europe. “But at the same time, the bits that the market was worried about—higher taxes and more regulation—will not happen. That’s what’s been driving the market higher.”
My take: Heavy betting on divided government.