US stock futures advanced Sunday as investors got a chance to react to projections of a Joe Biden presidential victory.
Dow futures were last up 349 points, or about 1.2%. S&P 500 futures were up around 1.5% and Nasdaq futures were up 2.1%.
The move higher comes after stocks ended Friday mostly unchanged. The Dow slipped 67 points, or 0.2%. The S&P 500 and the Nasdaq were flat.
Wall Street was already expecting a Biden victory as the the election appeared to tip in the Democrat's favor throughout last week. But investors are now able to react with more certainty: CNN projected Saturday that Biden would become President of the United States as his path to victory in Pennsylvania appeared to deliver him enough electoral votes.
While the race for control of the Senate still hangs in the balance — there are likely Senate runoff elections in Georgia still to come — investors are also expecting Republicans to hold the chamber. Such an outcome would allow for more modest policies on taxing and regulations.
Video: Election news briefly eclipsed worsening Covid-19 crisis (CNN)
"It's what happens in the Senate race that could determine the next move up or down," said chief market analyst at CMC Markets, Michael Hewson. "If that looks as if it might change in the run-offs in January then you could see some weakness in certain parts of the stock market in the event the Democrats get their blue wave wish."
Markets in Asia Pacific also rallied Monday. South Korea's Kospi Index was up 1.3%, while Hong Kong's Hang Seng Index added 1.2% and China's Shanghai Composite Index notched up 1.1%. Japan's Nikkei — already trading at its highest level in nearly three decades — rose 2.1%.
Outside of the United States, markets will be looking for signs that a Biden administration will take a more diplomatic approach to international trade negotiations than President Donald Trump, according to Margaret Yang, strategist with DailyFX.
A "fresh chapter to US foreign policy ... is important to the world and of particular interest to the export-oriented economies namely China, Mexico, the [European Union] and Japan," Yang wrote in a note on Monday.
Looking ahead, investors will be bracing for the US president-elect's next moves. On Saturday, Biden announced during his victory speech his plans to assemble a coronavirus taskforce that will aid in helping curb the spread of the virus. Biden is set to announce the names of those on his task force on Monday, two sources with knowledge told CNN. The number of coronavirus cases has seen an upswing with more than 50 million cases of Covid-19 reported worldwide.
"What we need in the US right now is someone who can really control the outbreak of coronavirus. Investors are confident that Biden gives them this assurity," said Naeem Aslam, chief market analyst at AvaTrade.
Despite a Biden victory, investors still hold concerns for how Trump will respond to the election loss in the weeks ahead.
"The one variable that cannot be accounted for is President Trump becoming even more erratic and destabilizing over the next ten weeks," said Brad Karp, chairman of Paul, Weiss, Rifkind, Wharton & Garrison LLP. "There is no telling what he might try to do and no ability to predict how the markets might react in response."
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November 09, 2020 at 07:36AM
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The results are in: The stock market likes Joe Biden - msnNOW
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