Stocks zoom higher as Wall Street predicts Joe Biden will win
Stocks zoom higher as Wall Street predicts Joe Biden will win
By Anneken Tappe, CNN Business
Updated 4:05 PM ET, Mon November 2, 2020
New York (CNN Business)US stocks finished higher on Monday, one day before Election Day -- when Wall Street expects Joe Biden will win the presidency and Democrats will retake the Senate and maintain control of the House.
Stocks opened sharply higher before encountering volatility and paring some gains.
The Dow (INDU) closed up 1.6%, or 423 points, having gained more than 500 points at its high point. The broader S&P 500 (SPX) finished 1.2% higher.
The Nasdaq Composite (COMP) had a choppier trading day, opening sharply higher before turning red in the early afternoon and then clawing back some ground before the closing bell. The index finished up 0.4%.
All three benchmarks retraced some of their losses from last week, when they recorded their worst week since March.
Although stocks typically favor Republican policies, investors are eager for more fiscal stimulus, that will buoy an economy headed south once again as coronavirus cases soar. Investors predict a "blue wave" would lift the chances of a comprehensive stimulus deal getting passed in the winter.
A Biden win would also likely mean less news and headline risk for stocks in the term to come, investors believe.
Even if the polls are wrong, the evidence is still pointing to a Biden victory, they added. Prediction market PredictIt puts a Biden win at 66%.
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https://www.cnn.com/2020/11/02/investing/dow-stock-market-election/index.html