Investors rushed to challenge the quick election results and a decisive democratic victory, sending stock futures riding roughshod over hours as trade and bond yields plummeted.
Polls in increasing states Showed the possibility of a democratic victory The White House and Congress fell, triggering a rapid turn in the markets.
In recent days, investors have been selling government bonds and buying sectors that could benefit from financial stimulus, such as shares of small companies. The election results, which show a close rivalry between President Trump and Democrat Joe Biden, quickly turned business on Tuesday evening. Meanwhile, a trade that had worked for most of the year – buying tech stocks – returned with full force.
Shares of large technology companies rose 3.8% in the futures market to the heavier Nasdaq 100. The S&P 500 futures added about 1.7%, while the session fell 2% before futures returned to positive territory, linked to the Russell 2000 small-cap index.
“There was a tremendous amount of optimism that a big blue wave was coming tonight, and now we are not seeing the things we thought we were going to see,” said Thomas de Caloma, managing director of rate trading at Seabord Global. Bonds in New York.