(For a Reuters live blog on U.S., UK and European stock
markets, click LIVE/ or type LIVE/ in a news window.)
* Tech rally resumes as investors bet on policy gridlock
* Solar, infrastructure, trade-related stocks gain
* GM, Qualcomm surge after results
* Fed likely to lay low as election result remains clouded
* Indexes jump: Dow 2.29%, S&P 2.47%, Nasdaq 2.66%
(Updates to market open)
By Medha Singh and Shivani Kumaresan
Nov 5 (Reuters) - Wall Street's main indexes jumped on
Thursday as investors bet on a Republican-held Senate that would
block any moves by a Joe Biden administration to tighten
regulation and raise taxes on corporate America, even as the
presidential election remained too close to call.
The tech-heavy Nasdaq gained 2.7% and was within striking
distance of it Sept. 2 record closing high.
The Philadelphia SE semiconductor index .SOX surged 4.1%
to hit its own all-time high, while technology .SPLRCT and
communication services .SPLRCL led gainers among S&P indexes.
The materials index .SPLRCM also hit a record high,
boosted by a 7.6% rise in shares of U.S.-German industrial gas
producer Linde LIN.N after it raised its expectations for
full-year earnings. With President Donald Trump and his Democrat rival Biden
still awaiting clarity from the battleground states expected to
decide the election, investors were returning to the core
setting of the past decade: buying stocks with the flood of
extra monetary stimulus coursing through the financial system.
Biden edged closer to victory in the race for the White
House on Thursday after winning Michigan and Wisconsin, but
Democrats appeared unlikely to win the Senate, potentially
making it difficult for a Democrat administration to rein in Big
Tech and other businesses. "Markets prefer divided government," said Brian Levitt,
Invesco global market strategist.
"Incessant hand wringing over the key issues and concerns
over the prospects of higher taxes, a Green New Deal, changes to
the Affordable Care Act and much more appears to have been for
naught."
Shares of technology mega-caps including Apple Inc AAPL.O ,
Amazon.com Inc AMZN.O and Alphabet Corp GOOGL.O , this year's
big "stay-at-home" gainers from coronavirus lockdowns, added to
strong gains from Wednesday.
The VIX volatility index .VIX , which has risen in recent
months as investors feared the vote might spark falls in shares,
retreated to its lowest in three weeks.
Renewable energy, infrastructure, marijuana and
trade-sensitive stocks, which analysts have identified as
winning under a Biden administration, rebounded after
underperforming in the previous session. But investors also sought the safety of bonds as the
prospect of a divided Congress dented expectations of a bumper
fiscal stimulus package that is critical to supporting a damaged
U.S. economy. Coronavirus risks also grew with new U.S.
infections setting a daily record. US/ Attention later in the day will be on the Federal Reserve's
latest policy statement after a two-day meeting, but with the
final result of the election still uncertain, the central bank
is expected to repeat its pledge to do whatever it can to help
the economy. [nL1N2HQ23I
At 10:21 a.m. ET, the Dow Jones Industrial Average .DJI
was up 2.29%, the S&P 500 .SPX was up 2.47% and the Nasdaq
Composite .IXIC was up 2.66%.
Qualcomm Inc QCOM.O surged 14.2% after the chipmaker
forecast fiscal first-quarter revenue above estimates as it
predicted solid growth in 5G smart phones sales next year.
Advancing issues outnumbered decliners 7.14-to-1 on the NYSE
and 3.21-to-1 on the Nasdaq.
The S&P index recorded 60 new 52-week highs and no new low,
while the Nasdaq recorded 118 new highs and 14 new lows.
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S&P 500 in first terms: Trump vs Obama https://tmsnrt.rs/34Vuvjy
Markets under different presidents during history https://tmsnrt.rs/3p35jj4
Trump timeline https://tmsnrt.rs/31QeDN8
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