Joe Biden, Barack Obama’s Vice President, was elected the next president of the United States on November, Saturday 7th.
Since the announcement happened during the weekend while markets were closed, analysts nonetheless, have expressed their optimism regarding the result.
According to many, it seems that the economic pattern will most likely look like the Obama administration, with a slow way to the recovery.
Moreover, Uber and Lyft are celebrating a major victory since Proposition 22 was voted in California. Also, several States have legalized locally recreational marijuana, making it an increasing popular investment.
Markets Showed Trust During Election Week
First November week of 2020 in America was unexpected and made Wall Street thrive. Not only the results were not known on Tuesday, November 3rd, but the markets have shown unexpected results.
Despite uncertainty around the results of the presidential election, the U.S. stock market had its best week since April, helping some of the world’s richest add billions of dollars to their fortunes. https://t.co/C7SXyS1hry
— Forbes (@Forbes) November 7, 2020
Instead of holding their breath, markets have expressed optimism since the first press announcement from the Associated Press and the New York Times that Joe Biden was ahead of Donald J. Trump. Indeed, numbers were best since April in the election week rally, reported the NYT.
“S&P 500 was unchanged Friday, bringing its gains for the week to 7.3 percent, also the Stoxx Europe 600 index was nearly 7 percent on the week”.
Nasdaq Futures was up +2.25%, Dow Futures +1.25% and S&P Futures gained 1.52%.
What Republicans at the Senate Means
At the moment, many things remain uncertain. If Republicans manage to take control over the Senate, History is likely to repeat itself.
“The Biden economy appears likely to show uncanny similarities to the 2011-to-2016 Obama economy”, analyzed the New York Times.
The newspaper also added that “Treasury bond yields fell sharply Wednesday, suggesting investors expect less fiscal stimulus, slower growth and easier monetary policy from the Fed than had been envisioned pre-election”.
According to the paper, the stock market soared because “investors priced in both easier money from the Fed and a Biden administration that will be constrained in its ability to raise taxes and expand regulation on businesses”.
Read on Alvexo: “Tesla Is About to Sell $5 Billion In Stock”
Local Laws Benefit Listed Companies, Too
This election has also brought a series of benefits locally for tech industries. Delivery-focused tech apps have rejoiced over the Proposition 22 being voted in California.
Uber shares jumped by 6.94% at $44.87, while Lyft soared by 2.79% at $29.86; Grubhub also rose from $72 on October 30th to $79.85 on November 6th.
— sams investing (@samstocksam) November 6, 2020
Last but not least, marijuana became legal for recreational use in New Jersey, South Dakota, Montana and Arizona, which means that the “green gold” might become an even bigger trend than planned next year.
As a result, Aurora Cannabis doubled its value, reaching $9.59 a share, +56.14%, as well as Trulieve, soaring by 3.41% at $25.75. Auxly Cannabis shares also gained value by 2.96%, reaching $0.22 per share.
The above content is considered to be market commentary information and shall not be perceived as independent investment research or investment advice.