All eyes on U.S. election results
U.S. traders will try to trade stocks Wednesday without knowing exactly who will clinch victory and take the White House. Early indications suggest the market will open higher.
By 4:35 a.m. ET, futures tied to the blue-chip Dow Jones Industrial Average were up 87 points, or 0.32% to 27,463. Those on the tech-heavy Nasdaq 100 futures rose 36.02 points, or 1.07% to 3,397.62 while the tech-heavy Nasdaq 100 futures rallied 326 points, or 2.89% to 11,591.75.
Americans were glued to their TV sets Tuesday night watching President Donald Trump and Democratic challenger Joe Biden locked in a tight race. There is no clear leader as yet in the White House race as results continue to come in.
Polls have closed or are closing in most states, including several key battlegrounds. Trump has won the key battlegrounds of Ohio and Florida.
Uber, Lyft surge after California voters approve Proposition 22
Meanwhile, shares of Uber (NYSE: UBER) and Lyft (NASDAQ: LYFT) are rocketing after Californians overwhelmingly voted in favor of Proposition 22, a ballot measure allowing the gig economy to continue classifying their drivers as independent contractors.
According to the New York Times, roughly 6.6 million votes, or 58% of the total, were cast in favor of the measure.
The companies, along with DoorDash, Instacart, and Postmates, spent over $200 million in support of Proposition 22, making it the most expensive campaign for any ballot measure in state history.
They had threatened to leave California, or drastically cut back service, after they were ordered by a California Superior Court judge to classify their drivers as employees.
Uber shares rose 11.27% to $39.80 premarket, while Lyft stock gained 14.27% to $39.80 a share.
Federal Reserve set to kick off its policy meeting
In other news, the Federal Reserve is set to kick off its highly-anticipated Federal Open Market Committee (FOMC). Policymakers are likely to be digesting the outcome of the presidential race as they hold their regularly scheduled meeting on Wednesday and Thursday.
While the central bank pointedly keeps itself out of political developments, analysts believe that policymakers would consider shoring up financial markets if an uncertain or contested result caused extreme disruptions.
However, it is not expected to announce any rate changes or new projections at the meeting. The bank already zeroed out interest rates and offered huge credit facilities amid the Covid-19 crisis, recently extending them to reach more companies and nonprofit organizations.
