- The Dow Jones rallied 1.8% Tuesday.
- Wall Street recklessly pushed the U.S. stock market higher as it bets on a big victory for Joe Biden.
- Dow bulls are bidding up the market as most traders wait for certainty.
The Dow Jones surged 480 points in thin liquidity on election Tuesday, as Wall Street pummeled the U.S. Dollar and risky bets were placed on the outcome of Joe Biden’s showdown with President Trump.
Dow Jones Rallies on Big Biden Bets
All three major U.S. stock market indices rallied on Wednesday, as the S&P 500, Nasdaq, and Dow Jones were around 2% higher on the day.
In economic data, a positive reading in factory orders was insignificant in the face of the U.S. presidential election.
With turnout spiking around the U.S., Wall Street bulls appear confident that they will know the election result tonight and that it will likely be a Biden victory.
Watch the video below for Jim Cramer’s take on the state of markets.
Hopes of imminent fiscal stimulus post-election is arguably the biggest carrot for investors. Once the election is resolved, either candidate is likely to get funds out directly to the people. A Biden presidency is also Dow positive in theory because he is more aligned with free trade.
Nancy Pelosi has been explicit in her praise of how well the last package worked, and should there be a blue wave, another trillion-dollar bazooka seems likely. The longer-term ramifications of a blue wave may be less positive, as higher taxes on the very wealthy and more spending is on the horizon.
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