Wall Street widely speculated Monday, betting on a probable victory for Joe Biden. At the opening of the meeting, the headlines flew for an insane 30 minutes during which rumors of the Democratic candidate’s “big win” spread like wildfire. The Democratic candidate is promising a $ 2.2 trillion stimulus package.
The S & P500 gained this Monday + 1.23% to 3.310 and ends close to its opening levels, the Dow Jones stands out with + 1.6% (0.6% better than the opening, and its best performance since October 7), the Nasdaq is content with + 0.4% but posted -0.4% 2 hours from the close after more than 1.5% shortly after the opening.
The scenario of a victory for Democratic candidate Joe Biden – who has strengthened his lead in the polls in recent weeks – remains the scenario favored by the markets, but the crucial question is the ‘sincerity’ of the ballot in the ‘swing states ‘(these states which decide the fate of the elections) where the scores could appear tight, which could push Donald Trump to demand recounts, or arbitration of the Supreme Court (which is now all given to him, at 6 against 3) . And Wall Street is hoping that whoever wins, he wins both Houses (the Senate is held by Republicans). A victory for Joe Biden would be less favorable to ‘GAFAM’ but more to industry and green ’stocks.
Note that nearly 100 million Americans have already voted in advance. But for weeks Donald Trump has criticized this option, accusing it of promoting electoral fraud. The president is uncertain about what position he will take in the event of a defeat. “As soon as the election is over, our lawyers will be ready,” he added, however, raising the possibility of a long legal battle.
