Collaborative Wealth

US markets pullback amid uncertainty. As ballots are still being tallied, equities opened little changed this morning. Investors appear to be in approval of a likely divided Congress outcome, offsetting concerns about a possible drawn-out battle for the White House and COVID-19 spread.

As of Thursday morning, a winner to the 2020 presidential election has yet to be “officially” declared as several battleground states have yet to be called. Even as more clarity emerges from remaining votes being counted in Arizona, Nevada, and Pennsylvania today and tomorrow, recounts and legal challenges could draw this out longer.

Stocks opened sharply higher. With the election still too close to call, US stocks opened sharply higher as market participants continue to express approval for a likely split Congress outcome. The potential benefits for corporate America are—at least for now—offsetting concerns about a contested election and drawn-out legal challenges.

The election is over, but the questions are mounting. We don’t know who will be the next president as of Wednesday morning, but we do know that stocks tend to do well in the final two months of an election year.

US markets opened sharply higher despite the lack of a winner. Following a solid close for US equities, the markets opened strongly in the green this morning. Investors appear to be pricing in increasing odds of a divided government, which may take major tax increases and some regulatory risk off the table.