Reuters reported that many investors and major financial companies in the United States have breathed a sigh of relief, after several media outlets announced the victory of Joe Biden in the US presidential elections, while a Business Insider report showed the most important winners and losers in the economic sector awaiting results. Official to see who is the next White House master.
"Biden is great news for the markets ... We are all tired of the market fluctuations associated with Trump's tweets," said Christopher Stanton, chief investment officer at Sunrise Capital Partners, Reuters reported.
In addition to those battles, there were concerns among investors about the personalities Biden might appoint in his government, and whether the Senate would be republican or democratic.
A Republican Senate will impose restrictions on Biden's appointments, forcing him to make more moderate choices. But anticipated replays in the Georgia state Senate race could muddy that scenario.
However, investors are relieved to announce the election results after seemingly endless tension as a young man is counting the ballots after Tuesday's election.
"The markets will be satisfied with that because Biden will not go too far," said Jim Awad, director at Clearsted Advisors. "It's going to be a mediating government, not a government that works with tweets."
Jimmy Dimon, chief executive of JPMorgan Chase & Co., the largest US bank and a heavyweight in the financial sector, called for unity and calm.
"The time has come for unity," he said in a statement. "We must respect the results of the US presidential election, respect, as we have done in every election, the decision of the electorate and support a quiet transfer of power."
According to Reuters, the main US stock indices last week achieved their biggest weekly gain since April, as investors bet on Biden’s victory and the Republicans ’retention of the Senate, which could prevent any major tax increases or tightening of the rules on companies.
But investors fear the results will be contested for weeks or months. If Trump's lawsuits gain momentum, they could shock asset prices.
"Investors should be prepared for some fluctuations," said Jason Ware, director of investment at Albion Financial Group. "There are undoubtedly risks to stock prices if we get bad tweets. The great news is that it will be short-lived and that we are transferring power to someone I see much more capable."
- But who are the winning and losing companies in the US elections?
Technology companies are likely to be the biggest winner in the stock market, according to Business Insider. The sector led market-wide gains on Wednesday and Thursday as investors saw that Congress is mostly divided on protections against antitrust laws.
The S&P 500 technology index rose 10 percent, extending the bullish narrative and reinforcing the elevated valuations of the tech giants.
Healthcare stocks rose as the specter of intense government scrutiny faded, as the S&P 500 healthcare index rose more than 8 percent during the week, as investors bet on the failure to pass progressive health insurance reforms.
In the same vein, a similar index of financial stocks rose by nearly 6 percent in the hope that Republicans in the Senate will be able to prevent a corporate tax increase.
In the state elections, according to the analysis of "Business Insider" cannabis, "won" a clear victory, as New Jersey, Montana, South Dakota and Arizona legalized the recreational use of marijuana, which quickly led to the expansion of markets for soft drugs.
Shares in that sector continued to rise during the week following the announcement of "Biden's victory," as the Democrats indicated that they are planning to decriminalize marijuana abuse at the federal level, although this may take a long time.
Shares of the "Aurora Cannabis" company for the production of cannabis rose to about 201 percent, and similarly shares of similar companies such as Tellree, Aphria and Canopy Growth rose.
Also among the winners are Uber and Ridshare Lift after Tuesday's election results emerged, as they fought hard to pass an offer that would allow gig firms to continue to classify their workers as independent contractors and avoid offering the benefits that come with full employment.
Uber shares jumped by as much as 36 percent, close to a record high, while Ridshare Lift shares rose as much as 41 percent.
- The losers
Perhaps the energy sector will be one of the stiffest losers due to the US election results, after rising nearly 4 percent on Tuesday, and the S&P 500 energy index fell again.
Meanwhile, the US dollar fell to its lowest level since March, as investors turned to the Federal Reserve (the central bank) to drive the country's economic recovery.
With expectations of an increase in inflation, the Federal Reserve indicated that it will not raise interest rates until inflation is steadily heading above 2 percent, and as long as rates close to zero are in place, the dollar's value will remain weak.
In addition, the Fed may need to ease monetary conditions further to keep the recovery on track.
According to the "Business Insider" website, such efforts can add liquidity to the financial system and further weaken the value of the dollar. Therefore, it is certain that a weak dollar will reduce the cost of import, which is reminiscent of the current US President Donald Trump's repeated calls for a weak dollar to improve capacity. The competitiveness of the United States in trade.
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