Jan 6 Reuters Futures tracking the Nasdaq 100 index fell more than 1 on Wednesday as investors priced in the prospect of Democrats winning both races in a Senate runoff election in Georgia that will determine the balance of power in Washington.
Edison Research called one of the races for Democrat Raphael Warnock, unseating incumbent Kelly Loeffler, while Democratic challenger Jon Ossoff held a slim lead over Republican David Perdue in the other with 98 of votes counted.
A Democratcontrolled Senate would give more scope for Presidentelect Joe Biden to act on his reform plans including new COVID19 stimulus, but it could also mean higher corporate taxes and tighter regulations on the technology megacaps policies not typically favored by Wall Street.
A blue wave might not be a bad outcome for markets as decisive fiscal action will help to accelerate economic recovery, said Vasu Menon, investment strategy executive director OCBC Bank, Singapore.
This will be broadly bullish for risk assets, particularly equities, credit, commodities, and emerging market securities.
By 206 a.m. ET, Dow eminis were up 89 points, or 0.29. Constituents of the bluechip Dow are generally expected to benefit from a pickup in economic activity.
SP 500 eminis were down 5.25 points, or 0.14, and Nasdaq 100 eminis were down 147 points, or 1.15.
Hopes of a vaccinepowered economic recovery in 2021 had powered Wall Streets main indexes to record highs in lateDecember, but sentiment has recently…