Wall Street closed steady on the brink of Joe Biden’s victory

ILUSTRASI. Wall Street. REUTERS/Andrew Kelly

Source: Reuters | Editor: Tendi Mahadi

KONTAN.CO.ID – NEW YORK. Wall Street flinched on Friday to end a strong week as Democratic US presidential candidate Joe Biden drew closer to victory, while his monthly employment report underscored the hurdles the US economy still faces.

Biden has a narrow lead in Pennsylvania and Georgia which puts him on the brink of victory, even though President Donald Trump has filed lawsuits in several states.

Wall Street’s three main indexes posted their biggest weekly percentage gain since April as the prospect of a policy gridlock in Washington eased fears that the Biden administration might tighten regulations on US companies.

Also Read: Wall Street: Dow Jones and S&P 500 Slightly Down, Nasdaq Strengthened Slightly

The Dow Jones Industrial Average .DJI fell 66.78 points, or 0.24%, to 28,323.4. Meanwhile, the S&P 500 .SPX fell 1.01 points, or 0.03%, to 3,509.44. On the other hand, the Nasdaq Composite .IXIC rose 4.30 points, or 0.04%, to 11,895.23.

“It’s not a fairy tale, we don’t go up every day so at some point you’d think we’ll see a bit of downward pressure,” said JJ Kinahan, chief market strategist at TD Ameritrade in Chicago.

US Senate control can depend on four undecided voting results. If Republicans retain their majority, they will likely block most of Biden’s legislative agenda, including expanding healthcare and fighting climate change.

“There are some concerns that if Biden wins Georgia, there is a chance the (Senate) seat will follow. That’s what people read about this, “said Yousef Abbasi, global market strategist at Stonex Group Inc in New York.

Also Read: Wall Street fell ahead of the weekend, the three main indexes are still surging in the week

While the government’s closely watched report showed unemployment fell sharply to 6.9% last month from 7.7% in September, but job recovery is slowing as fiscal support eased and coronavirus cases surged.

After the jobs report, US Senate Majority Leader Mitch McConnell said economic statistics indicated Congress should introduce a smaller coronavirus stimulus package that is highly targeted at the effects of the pandemic.