Wall Street stocks saw a potentially optimistic start on Wednesday as US equity futures climbed after the medium-term elections, which had no major impact, and the dollar fell.
How do the benchmarks work?
Dow Jones Industrial Average Futures
YMZ8, + 0.73%
rose by 201 points, or 0.8%, to 25,838, while S & P 500 futures
ESZ8, + 0.91%
by 26 points or 0.9% to 2,784.75. Nasdaq-100
NQZ8, + 1.29%
rose by 90.25 points or 1.3% to 7.105.
DJIA, + 0.68%
On Tuesday the Dow Jones Industrial Average
DJIA, + 0.68%
The S & P 500 Index rose 173.31 points or 0.68% to 25,635.01
SPX, + 0.63%
rose 0.63% and the Nasdaq Composite Index
COMP, + 0.64%
climbed 0.64% or 47.11 points to 7,375.96.
The Dow closed at session high, while the S & P 500 and Nasdaq ended the day just ahead of best levels on Tuesday.
What drives the market?
The medium-term US election results largely coincided with forecasters' forecasts. The Democrats took control of the house and the Republicans kept the Senate under control. The results may have implications for President Donald Trump's legislative agenda, but at the moment markets are looking optimistic as immediate uncertainty fades.
Read: How the interim times have made history: Numerous initial results emerge from the results of the election night
There were also compromise signals from Trump that spoke of working with the other side as signs grew that the Democrats would see a home win.
See: How could a divided congress defy standstill?
Investors may quickly turn to a two-day meeting of the Federal Reserve, which ends on Thursday. However, the central bank is unlikely to change interest rates.
What do strategists say?
"By the way, the outcome of US midterm elections will hamper further fiscal easing and increase the likelihood that the cycle will peak, but leave the president free to pursue his trade policy," said Kit Juckes, Global Macro Strategist at Société Générale, in a note.
"With investors unaware of a period of political uncertainty, it is reasonably fortunate that they are considering repurchasing stocks in their portfolio," said Jameel Ahmad, global head of currency strategy and market research at FXTM.
How do other markets act?
SXXP, + 1.16%
On a broad front pushed up, while the shares were mixed in Asia unevenly.
The greenback has seen some of the biggest moves after the ICE Dollar Index
fell 0.6% to 95,765. The yield of the 10-year Treasury note
fell 3 basis points to 3.179% after reaching October 10 on Tuesday.
CLZ8, + 1.08%
fell 0.4% as gold futures
GCZ8, + 0.74%
rose by 0.7%.
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