U.S. stock index futures surged higher on Tuesday as investors bet on a Joe Biden victory that could add more fiscal stimulus to the economy. After a five-week low last week, S&P 500 and NASDAQ gained momentum in November, consistent with Biden’s lead in presidential election opinion polls.
- Under Biden’s presidency, the U.S. economy will be more supportive of equity markets as more stimulus programs will raise cyclical sectors’ performance.
- Investors are bracing for market swings if there is no immediate outcome on Tuesday night to a protracted ballot count or disputed results
- Investors are also monitoring the Federal Reserve’s two-day policy meeting, and monthly jobs report this week.
- Shares of big U.S. banks which are sensitive to the economic outlook rose between 1.4% and 2% in premarket trading
U.S. stocks and futures are currently gaining. SPY is up 2.11%, S&P 500 is up 2.09%, NASDAQ Composite is up 2.13%