scorecard
  1. Home
  2. stock market
  3. news
  4. US stocks climb as investors weigh political clarity against virus risks

US stocks climb as investors weigh political clarity against virus risks

Ben Winck   

US stocks climb as investors weigh political clarity against virus risks
  • US stocks gained on Friday as hopes for a peaceful transition to the Biden administration offset concerns about rising COVID-19 cases.
  • President Donald Trump said Thursday that he'd hand over power when the Electoral College certifies President-elect Joe Biden as the winner of the 2020 election.
  • The US reported 125,082 new coronavirus cases on Thursday, bringing the seven-day average to 163,831, according to the COVID Tracking Project. Deaths topped 254,000, and hospitalizations jumped above 90,000.
  • Cboe's VIX — also known as Wall Street's "fear gauge" — fell below 20 on Friday, dropping amid low trading volumes to its lowest level since the pandemic began.
  • Watch major indexes update live here.

US equities rose on Friday as optimism about President-elect Joe Biden's transition to the White House squared off with rising virus risks.

President Donald Trump said Thursday that he'd pass on power to Biden when the Electoral College cements the president-elect's victory. Though Trump indicated that he might never officially concede defeat, the statement further eased concerns that the sitting president wouldn't allow for a peaceful transition of power.

Here's where US indexes stood shortly after the 9:30 a.m. ET open on Friday:

Read more: Morgan Stanley's Mike Wilson called the last 2 market sell-offs. He told us the 3 indicators he used to make his predictions — and detailed how he keeps his cool in downturns when others are making doomsday forecasts.

US stock markets are set to close at 1 p.m. ET following the Thanksgiving holiday.

The Biden administration's transition and the president-elect's announcement that he'd nominate Janet Yellen to be the treasury secretary lifted investor sentiments throughout the week. But rising coronavirus cases across the country reined in some bullishness. The US reported 125,082 new cases on Thursday, bringing the seven-day average to 163,831, according to the COVID Tracking Project. Hospitalizations rose above 90,000 and deaths above 254,000.

The fading of political uncertainties pulled market volatility to its lowest point since the pandemic froze economic activity in March. Cboe's VIX — commonly referred to as Wall Street's "fear gauge" — fell below 20 on Friday amid the calm trading activity.

Read more: Goldman Sachs' hedge fund VIP list has crushed the S&P 500 60% of the time since 2001. These are the 15 stocks hedge funds love and hate the most right now.

Investors are likely to look to early reports of Black Friday shopping activity to gauge whether soaring case counts and the slowing pace of economic recovery will affect holiday-season sales. Consumer-spending and income data have pointed to worsening conditions, and some fear that weaker-than-expected holiday revenues could lead to new economic pain.

Bitcoin fell in Friday trading, extending its biggest slide since the start of the pandemic. The cryptocurrency had soared to just below its 2017 record of roughly $19,700 before profit-taking dragged it below $16,000 through the Thanksgiving holiday.

Read more: Deutsche Bank says you need to own these 10 value stocks set to rise by as much as 52% as Europe gets a grip on COVID-19

Gold sank as much as 2.3%, to $1,774.42 per ounce, its lowest since June. The US dollar weakened against the majority of its Group of 10 peers, while Treasury yields fell.

Oil futures traded mixed. West Texas Intermediate crude fell as much as 2.5%, to $44.55 per barrel. Brent crude, oil's international benchmark, posted an increase — it gained 1.3%, to $48.44 per barrel, at intraday highs.

Now read more markets coverage from Markets Insider and Business Insider:

An innovation-focused portfolio manager at a $158 billion firm shares 8 disruptive stocks across multiple industries he thinks could grow 30% every year over the next decade

US corporate profits jumped a record $495 billion in the 3rd quarter as the economy reopened

The stock-market impact of millennial investors has been overblown as trading volumes decline — and it's actually the older crowd who's exerted more influence, JPMorgan says

READ MORE ARTICLES ON



Popular Right Now



Advertisement