๐โ๐จ Republican Senate is seen as positive for tech but isnโt this optimism excessive?
Biden win in US election is nearly a lock now and thatโs 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 โabcโ 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.
