US Markets Jump as Biden Gains Lead

Plus500 | Thursday 05 November 2020

US markets have been rising this week, shaking off late October losses and pushing the dollar higher.

Biden and Trump

President Donald Trump preemptively declared victory on Tuesday night after polls had closed, even though all ballots had not yet been counted. Despite being behind on Tuesday night, former vice president and Democratic candidate Joe Biden has slowly pulled ahead of Trump on Wednesday night, following signs that Biden was leading in Michigan and Wisconsin.

USD Stands Firm

As mail-in ballots proved to lean more towards Biden, markets rallied and the dollar climbed in the Forex market. The GBP, the British Pound Sterling (GBPUSD) dropped 0.7% against the US Dollar on Wednesday. At the same time, the USD held steady against the  Euro (EURUSD), Australian Dollar (AUDUSD), and Canadian Dollar (USDCAD).

Despite uncertainty of when final results will be available, traders were bullish on the dollar, expecting it to remain strong.

US Markets Climb as Biden Pulls Ahead

Wednesday trading saw US markets climb alongside Biden’s chances of winning. As markets opened shortly after Wisconsin seemed as if it might flip to blue, S&P500 (USA500) futures jumped, reaching as high as 3,479 points before closing out the day at 3,440 points. This 2.29% rise came despite uncertainty around the presidential race. 

The S&P500 was not alone on this day of rallies. The DJIA (USA 30- Wall Street) climbed 1.3% while the Nasdaq100 (US Tech-100) rose 4.3%. This was while the VIX Volatility index (VIX) dropped 8.7%, demonstrating market stabilization.

Ballot Measures Impact Shares

In California, proposition 22 or “Prop 22”, which pushed for Uber and Lyft drivers to remain independent contractors passed by 58%. This saw both ridesharing companies’ shares rev up, raising Lyft (LYFT) by 11.2% and Uber (UBER) by 14.6% during Wednesday’s trading.

Four states voted to legalize the recreational use of Marijuana, including New Jersey, Montana, South Dakota and Arizona. Despite the lifting of restrictions on this plant, Tilray (TLRY) fell 9.3% along with Canopy Growth (CGC), which dropped 7.3%. Despite these major players’ drop, the Cannabis Stock Index (BGCANG) ticked 0.6% higher to finish out yesterday’s trading at 307.65 points.

As of Thursday morning, there is still no clear winner of the US presidential election with some states, like Pennsylvania, saying they will need more time to properly count mail-in ballots.


Get more from Plus500

Expand Your Knowledge

Videos & Articles help you expand your trading knowledge.

Prepare Your Trades

Our Economic calendar helps you explore global market events.

Trade Without Surprises

Understand the full costs of your trades now for better expense management later.


This information is written by Plus500 Ltd. The information is provided for general purposes only, and does not take into account any personal circumstances or objectives. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice. No representation or warranty is given as to the accuracy or completeness of this information. It does not constitute financial, investment or other advice on which you can rely. Any references to past performance, historical returns, future projections, and statistical forecasts are no guarantee of future returns or future performance. Plus500 will not be held responsible for any use that may be made of this information and for any consequences that may result from such use. Hence, any person acting based on this information does so at their own discretion. The information has not been prepared in accordance with legal requirements designed to promote the independence of investment research.

Need Help?
24/7 Support