Biden president USA

Dow Futures Rise On Biden Success

Dow Futures Rise On Biden SuccessDow Futures Rise On Biden Success

Futures on US stock indexes showed a higher opening level on Wednesday

Preliminary Super Tuesday voting results show former Vice President Joe Biden has won key wins and reassured investors that he is the best candidate in the Democratic pool.

On Wednesday morning, Dow Jones Industrial Average futures showed an increase of about 500 points at the open. S Futures&The P 500 and the Nasdaq 100 also showed solid gains in the stock at the open.

Biden’s early voting success on Tuesday seemed to bolster US stock futures prices, as the former vice president showed a wave of victories in key southern states including Virginia, North Carolina and Arkansas. To date, NBC News predicts a total of 453 Biden delegates, ahead of Bernie Sanders’ total of 373 Vermont Senators. To win the nomination, a Democratic nominee must have the backing of a majority of the announced delegates – at least 1,991 of the total 3 979 announced delegates.

«We believe the stock market is intimidated by lower expectations for Trump’s re-election as well as Sanders’ rise in early 2020», – wrote Lori Kalvashin, head of RBC Capital Markets for equity strategy, commenting on market turbulence in recent weeks.

Kalvashina wrote that if Biden proves he could pose a serious threat to Sanders on Super Tuesday, industries that have come under pressure during Senator Vermont’s recent rally (like healthcare) could see positive shifts on Wednesday..

«If Super Tuesday is good for Biden, the areas with the most negative ratings may find some relief. We think this is especially true in healthcare, where metrics have been correlated with Biden’s chances for some time.», – she wrote.

Biden’s supremacy also seems to have boosted stocks in healthcare companies such as UnitedHealth, one of the largest health insurers in the United States..

Shares Up More Than 4% In Extended Trading On Tuesday Night.

Investors like Biden for his moderate tactics, as opposed to the more progressive policies of Senators Bernie Sanders and Elizabeth Warren. Some of them, like Ritholtz Wealth Management CEO Josh Brown, wrote that investors might be happy to see both Biden and Warren at the helm..

Warren, a retired law school professor who majored in bankruptcy law, is not a Wall Street favorite as she offers detailed plans to split big banks and tech companies and raise taxes..

«Stocks will be even more sensitive to Warren’s impending concessions than Biden’s big show, Brown wrote. – Wall Street players have always secretly feared her more than anyone else given her expertise».

Trading on Tuesday saw another volatile session for U.S. investors after the Federal Reserve announced an emergency rate cut to help calm investors worried about the economic fallout from the coronavirus..

The decision to cut rates by half a percentage point was made two weeks before the next scheduled Fed meeting. This measure reflects the central bank‘s belief that quick action will be most effective in tackling the weakening impact of the virus.

The Fed’s emergency rate cut was the first such emergency action to take place between scheduled meetings since the financial crisis..

Although the stock originally traded higher, the Dow, S&The P 500 and the Nasdaq Composite reversed course to end Tuesday’s session well below the open. The Dow fell more than 780 points, or 2.9%, and the S&P 500 fell 2.8%, both indices returned to correction.

Investors, in turn, are laden with US Treasuries, which for the first time dipped to 10-year yields below 1%. Gold, meanwhile, jumped 2.9% to $ 1,644.40 an ounce. Bond yields fall as prices rise.