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* Stock futures extend gain from trading session
* Tech stocks rally as antitrust risk fades
(Updates with detail after the close of trading)
By Noel Randewich
Nov 4 (Reuters) - U.S. stock market futures were marginally
higher late on Wednesday as the presidential election race
remained cloudy and the likelihood of gridlock in Congress made
investors optimistic that major policy changes would be
difficult to enact.
S&P emini futures EScv1 were last up 0.1%, extending a
rally in Wednesday's stock market trading session. Nasdaq 100
emini futures NQcv1 rose 0.5%.
Democratic candidate Joe Biden predicted a U.S. election win
over President Donald Trump after pivotal victories in Michigan
and Wisconsin, while the Republican incumbent sought to offset a
narrowing path to re-election with lawsuits and demands for a
recount.
Both Trump and Biden still had paths to reach the 270
Electoral College votes needed to win as states kept counting
mail-in ballots. However, Trump now has fewer options to secure
a second four-year term. A surprise win by Republican Senator Susan Collins in Maine
dimmed hopes by Democrats that they could get control of the
U.S. Senate. "Even if Joe Biden wins the Presidency, it looks like we are
going to have a divided congress so the opportunity to have
meaningful change at the fiscal level is pretty slim, and that
is what is being priced into the back end of the market today,"
said David Joy, chief market strategist at Ameriprise Financial
in Boston.
"If we are going to have a similar type of economic
environment as we've had, then we are going back to an emphasis
on trying to find earnings in a relatively scarce earnings
environment, back to the same winners as before."
The Dow Jones Industrial Average .DJI rose 1.34% to end at
27,847.66 points, while the S&P 500 .SPX gained 2.20% to
3,443.44.
The Nasdaq Composite .IXIC climbed 3.85% to 11,590.78.
It was the biggest daily percentage gain for the S&P 500
since June 5 and for the Nasdaq, since April 14.
Apple AAPL.O , Amazon AMZN.O and Alphabet GOOGL.O
surged over 4%, while Facebook FB.O jumped more than 8%, with
investors betting Big Tech companies will face less antitrust
risk under a divided Congress.
Investors said they favor a definitive, swift resolution of
the presidential race that would clear the way for a deal on a
stimulus package to revive the economy. Shares of defense contractors Northrop Grumman NOC.N ,
Lockheed Martin LMT.N and Raytheon RTX.N all rose on
receding expectations of a cut in defense spending.
Big Pharma Pfizer PFE.N , Merck & Co MRK.N and Johnson &
Johnson JNJ.N also climbed as the potentially split Congress
was likely to shield the industry from sweeping reform. The NYSE
Arca pharmaceutical index .DRG shot nearly 5% higher.
CBOE volatility index .VIX , a gauge for short-term
volatility, hit a two-week low after spiking to a four-month
high in the run-up to the election.
Despite the rally in stocks, the potential for political
uncertainty also sent investors to U.S. Treasuries, sparking the
biggest one-day drop in 10- and 30-year bond yields since June.
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Trump and the stock market https://tmsnrt.rs/31QeDN8
S&P 500 in first terms: Trump vs Obama https://tmsnrt.rs/34Vuvjy
Markets under different presidents during history https://tmsnrt.rs/3p35jj4
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