Singapore (10 Nov 2020) – Wall Street which started to charge ahead prior to the US Presidential Election of 3rd November 2020, clocked strong gains following Jo Biden’s win. All the major indices posted their highest recovery since hitting bottom in March this year. Nasdaq Composite rose over 9%, while the S&P 500 leapt over 7% in just a single week.
The uptrends will continue.
The market is confident in the new leadership in the White House and is somewhat relieved, as the Democratic Party has promised better stimulus packages to heal the economy. Jefferies’ analyst forecast a stimulus package of USD3 trillion would increase the US GDP seeing a growth rate of over 5.5% in the coming year.
Sectors that could be the prime beneficiaries of Biden administration include healthcare. Biden has promised that healthcare would be among his first tasks in efforts to combat and control the widespread of Covid-19 that has killed over 200,000 Americans. The Affordable Care Act, also known as the Obamacare, will be intact. The ACA signed into effect in 2010 promises Americans better insurance coverage and lower healthcare costs.
The next sector will be infrastructure, where we have seen companies such as Caterpillar and Vulcan Materials making the moves since mid of last week. Most analysts expect a significant infrastructure push regardless the outcome of the election.
Broadband Internet capacity has great potential too. The current Covid-19 pandemic posed challenges in tracking and tracing cases, which means more broadband development is required in the rural areas. Investors have been channeling funds on the broadband service providers. We’ve seen companies such as Cloudflare and Lam Research gained traction to the upside.
Clean energy is another sector to watch as President Elect Joseph Biden has voiced his support to resume accord for the Climate Change, and will act to ban new oil & gas exploration and installation in public areas. He also stated that there would be more subsidies on clean energy development and innovation.
Joseph Biden was elected the 46th President of the United States with 290 votes against Donald Trump’s 214.-/-www.halaluniverse.net
Disclaimer: Mr Mukhriz Mangsor is a Certified Financial Technician and an independent trader with market research firm QuantDynamics and contributes to www.halaluniverse.net on a regular basis. He focuses his attention on the technology stocks listed on Nasdaq. The content of this article should not be construed as a recommendation to buy or sell a security. All information is intended for educational purposes only and not as an investment advice. You should seek a professional investment advice from licensed investment advisors.
