Although the us presidential vote count takes an unusually long time, and the new US president may not be decided by a court, markets have reacted surprisingly positively. Stocks on Wall Street began to strengthen despite the heightened uncertainty.
The Dow Jones industrial average rose more than two percent on Wednesday, surpassing 28,000 points again after a while. The New York Stock Exchange’s main S&P 500 index added nearly three percent, and the tech-led Nasdaq rose nearly four percent. From a detailed point of view, it can be seen that from the individual segments the health titles were the most successful. The New York Stock Exchange‘s global healthcare index rose more than five percent.
But how is it possible that stocks are rising when the delay in counting votes increases uncertainty that investors don’t like? The answer is the results of the parallel elections to the US Congress. It is likely to remain divided, with Republicans controlling one chamber, the other Democrats. This will ensure that whoever sits in the White House does not fundamentally turn the wheel of economic policy. Such a situation suits investors relatively well, although they would most also like a quick decision on a new US president.
