For the
second straight day, US stock markets closed higher. The positive trend emerged
amid forecasts that Biden will win the US presidential election. According to
CNN, even the Dow Jones Industrial Average rose almost 2 percent, while the
Nasdaq Composite gained 1.4 percent.
Biden's victory
means Democrats will regain power in the Senate and control the House of
Representatives. Despite the fact that the stock market prefers the Republican
strategy, many investors have high hopes for Biden, after he announced the
adoption of new packages of policies aimed at supporting the country's economy
amid the coronavirus.
Independent
experts expected a high voter turnout, given that the ballots were sent by
mail, but the elections were still held in an unusual format for the United States
due to the pandemic. To avoid civil disorder, large shopping malls and other crowded places in Washington, New York, and other
cities were closed. Police representatives say that riots may still break out
because of activists' disagreement with the election results. If this happens,
a crisis will occur in the stock market.
It should
be noted that both presidential candidates have already announced that they
will challenge the election results if they are not in their favor. This kind
of situation is of great concern to Wall Street experts. Most are counting on
Biden to win, while others support Trump, pointing out that the S&P 500 has
risen nearly 50 percent during his presidency. But neither side is satisfied
with the uncertainty, which can drag on for a long time and destabilize the
situation in the stock market, leading to a decrease in key stock prices.