(For a Reuters live blog on U.S., UK and European stock
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* Tech rally resumes as investors see U.S. policy gridlock
* Qualcomm surges after results
* Fed reiterates "whatever it takes" policy
(Updates to market close)
By Chuck Mikolajczak
NEW YORK, Nov 5 (Reuters) - U.S. stocks jumped on Thursday,
as investors bet Republicans would retain control of the Senate
and block any major policy changes under a possible Joe Biden
White House that could dampen corporate profits.
With votes still being counted in battleground states,
investors were abandoning cautious pre-election positioning,
driving all of Wall Street's main indexes up for a fourth
straight session.
While a fiscal stimulus package is widely expected, the size
of any deal reached in a divided Congress is likely to be much
smaller than anticipated. This in turn could pressure the U.S.
Federal Reserve to pump more funds into the financial system,
supporting equity prices. Stocks got a brief additional boost from the Fed's statement
on Thursday. The central bank kept its loose monetary policy
intact and again pledged to do whatever it can to sustain an
economy severely damaged by the coronavirus pandemic. In the
post-statement press conference, Chair Powell said the Fed would
not consider directly funding fiscal activities. Biden was edging closer to victory after winning Michigan
and Wisconsin, but his Democratic party appeared unlikely to win
the Senate. This eased investor worries about tighter
regulations on Big Tech and a corporate tax hike.
"They stayed with what the market had expected. I think
there's concern about the economy and the trajectory of the
economy. But basically, I don't think they surprised the market;
they maintained their accommodative stance and maintained that
fiscal stimulus is needed," said Quincy Krosby, chief market
strategist at Prudential Financial in Newark, New Jersey.
"Given the scenario of an election where you're still
counting ballots, it would be very difficult for the Fed to
insert itself at this point."
Some market participants cautioned, however, that it was not
yet certain that Congress will remain split, so there is a slim
chance markets could be in for a shock.
Unofficially, the Dow Jones Industrial Average .DJI rose
542.85 points, or 1.95%, to 28,390.51, the S&P 500 .SPX gained
66.97 points, or 1.94%, to 3,510.41 and the Nasdaq Composite
.IXIC added 300.15 points, or 2.59%, to 11,890.93.
This week's rally marked the biggest four-day percentage
gain for each of the three major indexes in nearly seven months.
The tech-heavy Nasdaq, packed with "stay-at-home" corporate
winners under this year's lockdowns, gained well over 2% and was
within striking distance of its Sept. 2 record closing high.
The Philadelphia SE semiconductor index .SOX surged to
close at an all-time high, while technology .SPLRCT and
provided the biggest boost to the S&P 500.
All 11 of the major S&P 500 sectors moved higher in a broad
rally, and the VIX volatility index .VIX , which has risen in
recent months as investors feared the vote might spark falls in
shares, touched its lowest in three weeks.
The materials index .SPLRCM also hit a record, boosted by
a rise in shares of U.S.-German industrial gas producer Linde
LIN.N .
Qualcomm Inc QCOM.O rocketed higher after the chipmaker
forecast fiscal first-quarter revenue above estimates as it
predicted solid growth in 5G smart phones sales next year.
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S&P 500 in first terms: Trump vs Obama https://tmsnrt.rs/34Vuvjy
Markets under different presidents during history https://tmsnrt.rs/3p35jj4
Trump timeline https://tmsnrt.rs/31QeDN8
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