November 3, 2020
A rebound rally yesterday saw the Dow and S&P 500 gain 423.45 and 40.28 points, or +1.6% and +1.23%, respectively. The tech-heavy NASDAQ had a very volatile day, beginning up more than 100 points before dropping in the red, and then rallying back at the end of trading to finish up 46.02%, or +0.42%.
Where the markets go from here largely depend on what happens today, election day. “Ultimately, the markets want clarity, and the main threat to risk assets this week is the emergence of a contested election, so if races are tight enough for campaigns to sue to halt or extend recounts, expect a reversal of this morning’s rally,” Tom Essaye, founder of The Sevens Report, wrote in a note.
A global rally at the beginning of trading today is indicated as Dow futures are up more than 380 points prior to the open of trading this morning. Equity markets in Europe showed even stronger gains with Great Britain and France each gaining more than 2%. Asian market posted gains as well.