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Dow Closes Higher as U.S. Election Result Still a Mystery

Published 05/11/2020, 20:57
Updated 05/11/2020, 21:06
© Reuters
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By Christiana Sciaudone

Investing.com --  Markets rallied, though the U.S. is little closer to knowing who its leader will be for the next four years.

The Dow Jones Industrial Average rose 1.95%, or 542 points. The S&P 500 was up 1.96%, while the Nasdaq Composite gained 2.59%.

The race between Former Vice President Joe Biden and President Donald Trump narrowed ever so slightly with an additional vote count released in Nevada, giving the Democrat a slight leg up on his Republican foe. Trump's legal team, meanwhile, is suing states like Georgia and Pennsylvania, which are still counting ballots and where Trump is currently leading. States have warned that results may not be known for days. As per the memes, welcome to Groundhog Day.

The Federal Open Market Committee held its short-term rate at 0.25%, as expected by analysts.

“Economic activity and employment have continued to recover but remain well below their levels at the beginning of the year,” the FOMC said in a statement. "Weaker demand and earlier declines in oil prices have been holding down consumer price inflation." 

Fed officials have spoken publicly in recent months about the need for more stimulus to support a recovery, though Congress has been unable to reach an agreement on a plan to give aid to households and businesses.  

"Over coming months the Federal Reserve will increase its holdings of Treasury securities and agency mortgage-backed securities at least at the current pace to sustain smooth market functioning and help foster accommodative financial conditions, thereby supporting the flow of credit to households and businesses," according to the statement. 

Stocks rose for a fourth day with technology stocks leading the pack. Qualcomm (NASDAQ:QCOM) and Qorvo (NASDAQ:QRVO) were higher after reporting stellar results as 5G demand is set to grow. 

General Motors (NYSE:GM) rose as Chief Executive Officer Mary Barra said the automaker will boost capital spending to speed up electric vehicle development. Hanesbrands (NYSE:HBI) tumbled after providing less than exciting guidance and expectations that expenses will rise. 

The dollar retreated as gold prices surged to more than $1,950. Crude oil fell on signs that the world’s largest producers are still cutting official prices and chasing market share.

 

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