Alec Hogg: Stocks soar as Mr Market excited by likely US election result
Share markets hate uncertainty. So, it seems confusing that US share prices are surging at a time when this week's election results remain in abeyance. The reaction, however, is rational. In October, equity markets fell sharply as investors priced in the cost of an expected "Blue Wave" of a Democratic Party landslide that never arrived. Prices are readjusting to the reality of a split Congress.
Both the S&P500 and Dow indices gained another 2% on Thursday night, their fourth consecutive increase of more than a percentage point in a single session. Our partners at the Wall Street Journal report this to be the longest winning streak for the indices since October 1982. It's a run which takes the S&P and Dow to within a few percentage points of records set in early September.
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