👁🗨 Republican Senate is seen as positive for tech but isn’t this optimism excessive?
Biden win in US election is nearly a lock now and that’s been seen as negative for stocks, especially for the tech-heavy US100. Why is this market surging like crazy? We could list few arguments. First, Republicans will hold a thin Senate majority and they can trade their support for Dems fiscal package and get assurance of no tax hikes for corporations. Second, US could be following Europe into lockdowns and this has seen tech outperforming. US100 is surging hard and that could suggest a complete “abc” correction pattern and a rally towards new highs.
Investors should be on guard though. Europe is bound to suffer from lockdowns and yet local indices here have nearly fully recovered from the recent slump! This wave of optimism could be hard to justify. Traders should remember that we are still awaiting the FOMC decision (today 7pm GMT) and the NFP (tomorrow, 1:30pm GMT) this week.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appThis content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
