Stocks rose Wednesday despite the uncertainty surrounding the too-close-to-call presidential election between Donald Trump and challenger Joe Biden.
The Dow Jones Industrial Average rose 740 points, or 2.69%, to 28,220, the S&P 500 gained 3.23% and the Nasdaq jumped 4.3%.
Tech stocks including Apple and Amazon.com were rising sharply Wednesday as investors bet on the sector in advance of a split government and less of an emphasis on an antitrust crackdown.
UnitedHealth jumped Wednesday as investors calculated that regardless of whether Trump or Biden ends up in the White House a Senate stalemate will mean no dramatic changes for the healthcare sector.
“We’re in somewhat of a holding pattern in the markets amid the election uncertainty, aside from the big moves in tech,” said Mike Loewengart, managing director of investment strategy at E*Trade. “We’d caution anyone from reading too much into tech’s rise as a predicator of who will take the Oval Office – could be driven by the increasing likelihood of a divided Congress, which puts a damper on hopes for increased regulation against this sector. And the victory for some of these companies in California regarding gig workers probably isn’t hurting them either.”
President Trump declared he had won a second term, without evidence, and said he would ask the Supreme Court to stop ballot counting as he claimed the election has been ridden with fraud.
Video: Stocks look to extend Monday’s gains (CNBC)
Appearing at the White House early Wednesday, Trump said, “Frankly, we did win this election. So we’ll be going to the U.S. Supreme Court. We want all voting to stop.”
Biden told supporters he was “on track to win this election” and urged patience as ballots in the key states of Michigan, Pennsylvania, Wisconsin, Georgia and Nevada were still being counted.
It appeared Wednesday afternoon that Biden’s chances of securing the 270 electoral college votes needed to claim victory had improved. It appeared Republicans would remain in control of the Senate.
According to the Associated Press, Biden was ahead in the Electoral College count 238-213.
The U.S. economy added far few private sector jobs than expected in October, according to Automatic Data Processing, perhaps setting up a weak reading for the official U.S. employment report to be released Friday.
ADP said private sector jobs grew by 365,000 last month, well shy of Wall Street forecasts of 650,000.
Uber Technologies and Lyft jumped Wednesday after voters in California approved Proposition 22, which would classify the companies’ drivers as contractors rather than employees eligible for benefits and job protections.
This article was originally published by TheStreet.