Wall Street surges despite U.S. election uncertainty

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U.S. stock indices had their biggest gain in five months as traders bought shares of companies that might benefit from a Republican-controlled Senate.

The NASDAQ was the standout gaining 3.8%, notching its biggest gain in more than six months as technology shares led the way. The Dow was up 1.3% and the S&P 500 rose 2.2%.

Tech stocks have proved impervious to the damage inflicted on other industries by the coronavirus pandemic.

Investors have increasingly seen tech stocks as some of the safer bets in the market, able to grow their profits even in a pandemic as more of daily life shifts online.

They don’t need a big stimulus effort for the economy as much as other companies, and the likelihood of Washington approving such a package dropped with the chances of a Democratic sweep. That led to a better performance for the tech-heavy Nasdaq over other indexes. Microsoft, Amazon, Facebook and Google’s parent company all rose at least 5%.

Meanwhile, with Republicans edging closer to retaining control of the Senate, prospects dimmed for the tax increases and tighter regulations on businesses that investors expected if Democrats scored an electoral sweep. However, a big stimulus effort for the economy that some on Wall Street say is needed now also seems unlikely.

The fate of the U.S. presidency remains undecided as neither President Donald Trump nor Democratic challenger Joe Biden has secured the 270 Electoral College votes needed to win.

More in NEWS 1130 Business at :26 and:56 past each hour.

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