Business

Stocks Surge Higher Wednesday Amid Election Uncertainty

(Photo by KENA BETANCUR/AFP via Getty Images)

Dylan Housman General Assignment & Analysis Reporter
Font Size:

The stock market was up big Wednesday despite lingering questions over what the exact outcome of the previous day’s elections will be. 

The S&P 500 and Dow Jones Industrial Average were up more Wednesday than any other day after an election in at least 40 years, according to the BBC. The S&P ended the day up 2.2% while the Dow saw an increase of 1.3%. (RELATED: Florida Passes $15 Minimum Wage Amendment)

“It looks like it’s divided government regardless of who takes the White House,” FHN Financial Chief Economist Chris Low told the BBC. “That means a lot less probability of big sweeping legislative change, big sweeping spending or tax programs.”

Health care and tech stocks led the market increase, with the tech-centric Nasdaq up almost 4%. There was initially a dip in market futures during the night, as Democrats’ underperformance appeared to eliminate any possibility of a large stimulus package in the near future, but markets quickly turned around as Republican chances in the Senate grew better. The U.S. Chamber of Commerce said that even though not all the results are currently known, results so far indicate a strong pro-business Congress will be in place in 2021. 

As things currently stand, Republicans seem poised to hold a Senate majority while Democrats will keep control of the House of Representatives. That means there will be a divided government regardless of who wins the presidential election, which is currently still contested.