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Al-Marsad Journal – Agencies: Major U.S. stock indexes last week made their biggest weekly gains since April, with investors betting on Biden’s victory and Republicans retaining the Senate, which could prevent any major tax hikes or tighter rules on companies. According to “Reuters”.
But investors fear the results will be challenged for weeks or months. If Trump’s lawsuits gain momentum, they could shock asset prices.
“Investors need to be prepared for certain fluctuations,” said Jason Ware, chief investment officer at Albion Financial Group. “There is definitely a risk to stock prices if we get bad tweets. The good news is that it will be short-lived and we are shifting the power to someone I consider much more capable.
But who are the winning and losing companies in the US elections?
The winners
Tech companies are likely to be the biggest winners in the stock market, according to Business Insider, as the sector led market-wide gains on Wednesday and Thursday as investors see Congress is mostly divided over protections against antitrust laws.
The S&P 500 tech index rose 10%, extending the bullish narrative and bolstering the higher valuations of tech giants.
The S&P 500 health index rose more than 8% during the week, with investors betting on the failure of progressive health insurance reforms.
On a related note, a similar index of financials rose nearly 6 percent in hopes Senate Republicans can prevent a corporate tax hike.
In the national election, according to Business Insider’s analysis of cannabis, “a clear victory, as New Jersey, Montana, South Dakota and Arizona legalized the recreational use of marijuana, which has quickly led to the expansion of soft drug markets “.
Shares in this sector continued to rise in the week following the announcement of ‘Biden’s victory’, with Democrats indicating they plan to decriminalize marijuana use at the federal level, although it may take time.
The shares of the company “Aurora Cannabis” for the production of cannabis rose to around 201 percent, and similarly, shares of similar companies such as Tellree, Aphria and Canopy Growth rose.
Uber and Ridshare Lift are also among the winners after the publication of Tuesday’s election results, as they fought to pass a deal that would allow production companies to continue to classify their workers as independent contractors and avoid d ” offer the benefits of full employment.
Shares of Uber jumped 36%, near a record, while shares of Ridshare Lift rose 41%.
Losers
The energy sector could be one of the toughest losers due to the US election results, after rising nearly 4% on Tuesday, and the S&P 500 energy index fell again.
Meanwhile, the US dollar fell to its lowest level since March, with investors looking to the Federal Reserve (the central bank) to push the country’s economic recovery.
With expectations of rising inflation, the Federal Reserve has indicated that it will not raise interest rates until inflation steadily hovers above 2%, and as long as rates close to zero will be in place, the dollar will remain low.
In addition, the Fed may have to ease monetary conditions further to keep the recovery on track.
According to the “Business Insider” website, such efforts can add liquidity to the financial system and further weaken the value of the dollar, so it is certain that a weak dollar will reduce the cost of imports, reminiscent of repeated calls for current US President Donald Trump in favor of a weak dollar to enhance capacity. U.S. Competitiveness in Trade
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