Post Election Rally - Wall Street Like Gridlock

[whell]

The Dow was up 300 and the NASDAQ had its best single day rise ever the day after the 2020 election. Why?

https://www.cnbc.com/2020/11/04/elec...lose-news.html

“Markets are reacting very positively to the fact that a great deal of the election uncertainty has passed. Not all of it, but at least the worst outcomes seem to have been avoided. Markets hate uncertainty, and this is likely to be a tailwind for a while,” said Brad McMillan, chief investment officer at Commonwealth Financial Network.

Even with the president-elect unclear, stocks rose broadly during Wednesday’s trading session as hopes for a blue wave in Congress dwindled, which some argued would have been a headwind for areas of the market including Big Tech.


Watching CNBC this morning, a number of analysts have repeated these themes:

- No blue wave
- Tax policy should remain largely unchanged
- No advancement of the far left agenda (Joe Lieberman is speaking right now on CNBC and expressing some relief about this and would look for a Biden presidency to have a Cabinet of moderates)
- No legislative attempts to "reform" on big tech
- No structural changes to the SCOTUS

In other words, stocks think it'll be pretty quiet with limited legislative fireworks. That's not a bad thing.