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US stocks rise ahead of the Georgia elections

US stocks rise ahead of the Georgia elections

US stocks rose on Tuesday as investors awaited a result Two electoral races in Georgia That will determine control of the Senate.

The S&P 500 is up 0.5%, and the Dow Jones Industrial Average is up 0.5% as well. The Nasdaq Composite Index jumped 0.6%. The Major indexes fell sharply on MondayAfter closing at record levels just days ago.

Money managers watch closely Run-off elections for the Senate in Georgia Tuesday. If Democrats win both seats, it could make it easier for President-elect Joe Biden’s administration to pass new legislation.

Investors said that additional fiscal stimulus would be more likely if Democrats take control of Congress and the White House, and this could give stocks another boost. But they warn that the prospect of higher taxes and more regulation weighs on the markets.

“The market loves the status quo, the inertia, and that’s roughly where we are at the moment,” said Patrick Spencer, managing director of US investment firm Bird. “There is a fear of regulations about big technology and there is a fear of more taxes, but with a slim majority, you don’t get much of that.”

Mr. Spencer is not alone in this view. Others said that a narrow victory by the Democrats, or the Republicans retaining control of the Senate, likely meant that the legislative agenda would be revised.

“If the government is at a standstill, these are Goldilocks, because the government’s hands are going to be tied,” said Gregory Burdon, chief investment officer at a private bank.

Arbuthnot Latham.

US stocks recovered slightly despite growing concern that the epidemic will slow or halt the economic recovery.


Photo:

Michael Nagel / Bloomberg News

In the near term, investors also remain focused on the coronavirus pandemic, with rising infection levels and the potential for restrictions on social and commercial activity potentially reversing the global economic recovery. a A highly contagious strain of Covid-19 It was recently discovered in the United Kingdom and was also found in New York, the governor said Monday.

“There is generally a unanimous opinion about the forecast,” said Daniel Morris, head of the market, which is: Well, we have the third wave, the fourth wave, but thanks to the vaccine, we know it will be limited in time. Strategist at BNP Paribas Asset Management. “We saw that this was infected with the new strain of the virus.”

Four candidates are heading to the run-off in an attempt to win two seats that determine the party that controls the US Senate. Cameron McCurter of the Wall Street Journal explains the dangers of the upcoming race and each party’s campaign strategy. Image illustration: Ang Lee

Although this is likely to affect sentiment, liquidity from central banks, increased fiscal spending and the launch of the vaccine provide a counterbalance to concerns about growth, Mr Beardon said.

“The market will remain optimistic, regardless of which side wins,” in Georgia, Beardon said. “The main issue is really the fear of missing out.”

In the bond markets, the yield on the 10-year Treasury rose to 0.940% from 0.915% on Monday. Yields rise when prices fall.

New figures on manufacturing strength are due in December from the Institute for Supply Management at 10am ET. Economists polled by the Wall Street Journal expect factories continued to expand production in December, albeit at a slower pace than they had been in November.

Abroad, the Stoxx Europe 600 is down 0.4%.

Hang Seng in Hong Kong is up 0.6%. Hong Kong-listed shares of China’s top three telecom companies soared after that The New York Stock Exchange reversed its delisting decision With them. The previous plan came on the heels of a US government order, signed by President Trump in November, that bars Americans from investing in the list of companies the US government says supply and support the Chinese military, intelligence and security.

stocks

China MobileAnd the

Which is among the most valuable state-owned enterprises listed in China, rose 5.1%, while the total number of the listed companies was:

Chinese Telecom

And the

China Unicom

They jumped 3.4% and 8.5%, respectively. China’s Shanghai Composite added 0.7%.

Japan’s Nikkei 225 is down 0.4%.

Write to Caitlin Ostroff at [email protected]

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