Markets welcome the anticipated outcome of the legislative elections, outside the presidential election, which did not result in a Democratic “blue wave” projected by some pollsters and feared by investors. It is expected that Congress will remain split between Democrats, who will maintain control of the House of Representatives, and Republicans, who will retain their Senate majority.
This is seen as a positive scenario for financial markets, as it decreases the likelihood of substantial tax increases and regulatory changes predicted by Joe Biden, which would have a major effect on technology and health.
According to the new estimates from the Edison Research Institute, the presidential ballot count gave a lead on Thursday to Joe Biden, who so far has 243 Electoral College votes to Donald Trump’s 214. Other projections send Biden as many as 253 votes, assuming that he was Wisconsin’s winner, or that 99% of the votes were counted.
In order to win the elections, it is important to receive at least 270 votes from the main electors, a bar constituted by the plurality of the Electoral College, which will formally elect the 46th President of the United States next December 14.
The final result would focus on a few swing states, including Pennsylvania (20 votes), Georgia (16 votes), North Carolina (15 votes), Nevada (6 votes), Arizona (11 votes) and Alaska (3 votes), where ballots are still being counted. In these states, where the count could still take even days for some, the two candidates are neck-and-neck for now.
On the other hand, Wall Street this week has also been recovering more than what it has lost in the last two weeks when investors played low for being uncertain about the fate of US presidential elections. S&P 500, DJIA, Nasdaq all concluded the Thursday trading with up trends, while dollar index also came strengthening its position.