Despite being wrong about pricing in the decisive Democratic victory, the market continued its boom that began Monday, and settled with Biden as a favorite to win the presidency. Since Wednesday morning, investors have been married with uncertainty that prolonged optimism with Biden’s victory, resulting in a massive acquisition of monolithic tech equity.
Up about 6% since the vote ended, Tech Heavy Nasdaq has so far recorded a 2.40% rise, up up 11,864 points on Thursday.
This was guided by a continuous trajectory of large high-tech prices upwards. For example, Apple bouncing over 4% on Wednesday and 2.5-3% on Thursday. Yesterday, Amazon bounced the same rate as Apple today by over 5%. Microsoft rose more than 4% on Wednesday and more than 2.5% on Thursday. The alphabet was also shot at a similar rate, adding a modest profit on Thursday. Finally, Facebook hiked over 7% on Wednesday, up about 2.5% on Thursday.
Elsewhere in the tech stock, Tesla posted a 10% bounce between Monday and Wednesday, adding an additional 2% on Thursday. Netflix bounced 4% on Wednesday and about 2.5% today. And while it’s not Nasdaq, it’s worth paying attention to the surge in Uber. After a successful legal dispute on Wednesday, it rose by about 14% on Wednesday and almost 2% on Thursday.
This aggressiveness was not consistent with other stocks other than Big Tech, but was somewhat widely reflected across the US market. The Dow Jones and the S&P 500 both scored 1.5% to 2%, 28,388 points and 3,504 points.
Speaking about Big Tech Equities’ positivity and Nasdaq Bounce, Spreadex Financial Analyst, Connor Campbell, comments:
“Investors weren’t afraid to jinx the election results on Thursday, and continued to carry the Full Force Barrel to stock, assuming Joe Biden will be in January.”
“It’s not much changed since this morning. Arizona, Georgia, Pennsylvania and Nevada are all still using knife edges.”
“(…) But as they did on Tuesday and Wednesday, the market is using President Biden’s potential, even if not accompanied by the expected “blue waves” as an excuse to drag themselves out of the COVID-shaped holes they’ve found by the end of October. ”
IG Chief Economist Chris Beauschamp added:
“Last week’s selloff looks like a pre-election jitter, which appears to be a quicker turnaround than the tension was discovered.”
“It is true that the US election has not yet been officially decided, but Biden is likely to exceed the 270 vote threshold in the coming days, making Trump’s legal agenda unrelated, and once this road crash is removed, the stock market can gather again.”
