Tech stocks rose higher as U.S. voters went to the polls, again far beyond the results that could tell who would be elected president.
U.S. stocks rose broadly, with the S&P 500 closing up 1.78 percent to 3,369.11 – one of the best election days closed for the S&P – while the tech-heavy Nasdaq Composite closed up 1.85 percent to 11,160.57. All areas except one area closed higher today. The only exception is energy, which is down about 0.75% today. Saas and cloud stocks followed along with the rest of U.S. stocks, closing up 2.28%.
That increase may seem insignificant but consider last month. The Nasdaq is down just over 8 percent from an all-time high at the start of trading today. That makes today’s increase worth about a quarter of the gap compared to the recent drop back to record levels. The Nasdaq fell more than 10 percent from its recent peak before beginning its recovery in late October, making today’s rally part of a growing uptrend.
Depending on how a tea leaf reader polls, the benefit obtained can be considered an ate for the candidate’s platform.
Today’s stock market moves come from an uneven cycle of technology earnings, with big tech companies devouring blocks, while some smaller companies in the industry like Five9 have followed COVID-19 in line with good results. Netflix, Intel, Apple, and others have struggled to impress investors. Indeed, the reaction of the domestic stock market to the pulse of earnings has been muted in this cycle, as opposed to other sectors; It seems U.S. stocks have been priced higher than expected.
For the tech industry, today’s recovery is welcome, which could help pave the way for an expected IPO filing before the end of the year. Airbnb, DoorDash, and others remain strong contenders, this year.
Certain stock prices, particularly those of Uber and Lyft, rose on Monday as investors were confident California voters would pass Bill 22. The voting bill, if passed, would exempt ride-sharing companies from a new California law that forces contract economic workers to be classified as employees rather than contractors.
Back a little, Uber’s share price is still down about 3.87% from a month ago. But it is recovering, with a rebound in the last two days. Uber’s share price was 2% higher on Monday. Uber shares are up 2.76%, closing at $35.77 today. Lyft has experienced an even bigger collision in the last few days. Lyft shares closed up 7.06% to $26.23 today.
Shares are high for Uber and Lyft on Election Day. If Proposal 22 is unsuccessful, companies say they will have to change their business model. Both companies have threatened temporary closures in the state if forced to comply with new California laws. It seems that for now, investors believe Uber and Lyft will be able to continue to operate as always.