With Election 2020 Undecided, Risk Is On

The fate of U.S. Election 2020 is still unknown as the vote count enters a third day. With all signals pointing to a slim Biden win, risk is back in style on Wall Street. The DJIA DOW (+485), S&P 500 SPX (+65), and NASDAQ (+265) are deep into the green. The performance of the NASDAQ since election day has been astounding; it appears that traders are betting big on a swift end to the U.S./China war and anti-trust lawsuits against Google in the first 60 days of a Biden presidency.

As far as Election 2020 goes, Democratic challenger Joe Biden is well-positioned to be declared the winner in the coming 12 to 24 hours. However, Trump is still technically alive for victory; wins in Pennsylvania and either Arizona or Nevada will put Trump over 270. Vote counts are winding down in North Carolina and Georgia, with Trump holding onto slight leads.

From a market standpoint, most of the uncertainty stemming from Election 2020 has already been priced-in. Traders and investors are betting on more government stimulus and a relaxed U.S. trade posture driving markets higher. Ultimately, only time will tell if they are right.

Election 2020 Uncertainty? The Markets Think Not…

One would be hard-pressed to find a better three days for December E-mini NASDAQ futures. Prices are back above 12,000, up nearly 9% in the past 72 hours.

Overview: Since Tuesday morning, the NASDAQ has been roaring. Now, a retest of the All-Time High (12,444.75) for the December E-mini NASDAQ appears certain by week’s end. However, any developments in Election 2020 can send this market directional. Until the Trump/Biden contest is officially called, be sure to keep a close eye on a live news feed.

ABOUT THE AUTHOR See More

Shain Vernier

US Analyst

Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.

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