Jakarta, CNBC Indonesia – The stock exchange of the United States (US) opened higher in trading Thursday (4/11/2020), continuing the Wall Street rally that was printed yesterday even though the results of the presidential election (pilpres) still show tight competition.
The Dow Jones Industrial Average rose 373.9 points (+ 1.3%) at 8:30 a.m. local time (9:30 p.m. EST) and an interval of 15 minutes later to 375 points (+ 1.35%) to 28,222.62 and S&P 500 rose 59.8 points (+ 1.7%) to 3,503.21. The Nasdaq surged 258.6 points (+ 2.2%) to 11,849.4.
On Wednesday, NBC News reports that presidential candidate Joe Biden has a good chance of winning Wisconsin and Michigan, which Trump won in the 2016 presidential election. Biden remains to collect 17 electoral votes to win the biggest political event in the US.
It is estimated that the Democratic Party will still dominate the DPR seats, while the Senate is still controlled by the Republican Party.
“The market has reacted very positively to the fact that the big deal related to the uncertainty of the presidential election is over. Not everything, but at least the worst results seem to have passed. The market does not like uncertainty,” said Brad McMillan, Head of the Commonwealth Financial Network Investment Division, as quoted as saying CNBC International.
On Wednesday, the Dow Jones closed up 367.63 points, or 1.3%, after bouncing up to 821 points. The S&P 500 index rose 2.2%, while the Nasdaq grew by 3.9%. Wearing the Covid-19 case due to the presidential election tends to be ignored by the market. During the week, the three indexes strengthened by 6%, 7% and 8%, respectively.
Trump has previously claimed to have won Pennsylvania, Georgia, North Carolina and Michigan, and has declared he won big. Biden then responded with a speech stating that his party was confident of winning the presidential election this time.
However, Trump’s campaign team and Georgia Republicans filed a lawsuit on Wednesday following a late vote tally. The lawsuit comes after former republicans also filed lawsuits in Michigan and Pennsylvania.
“The market is looking for a peaceful transition of power, more than anything. Social unrest or a presidential election lawsuit could trigger a significant increase in volatility,” said Don Calcagni, Head of the Investment Division of Mercer Advisors, to CNBC International.
Today, several listed companies announced their performance per quarter III-2020 that exceeded market expectations, including Qualcomm and General Motors, so that their shares jumped by 14% and 3.9% respectively.
Investors are also watching the announcement of US monetary policy because the Federal Reserve’s central bank will set its benchmark interest rate, which is currently at the 0% -0.25% level. Monetary authorities have called for additional fiscal stimulus to maintain the economic recovery momentum.
CNBC INDONESIA RESEARCH TEAM
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