US Market extends gain on Thursday

The US stock market finished session sharp higher on Thursday, 05 November 2020, adding to the strong gains posted in the previous two sessions, on hopes that the winner of the US election would soon be determined with Joe Biden on the brink of claiming the presidency.

At the close of trade, the Dow Jones Industrial Average index rose 367.63 points, or 1.34%, to 27,847.66. The S&P 500 index advanced 74.42 points, or 2.21%, to 3,443.44. The tech-heavy Nasdaq Composite Index added 430.21 points, or 3.85%, to 11,590.78.

The continued strength on Wall Street came as traders kept an eye on the latest news regarding the presidential election. With projected wins in Michigan and Wisconsin, Democratic nominee Joe Biden currently sits at 253 electoral college votes, just shy of the 270 needed to win the White House. Votes continue to be counted in a number of key states, including Arizona, Nevada, Pennsylvania and Georgia. While Biden currently seems poised to unseat President Donald Trump, Democrats are not expected to take control of the Senate.

Investors bought technology and healthcare firms on bets that a divided US Congress would mean no major tax hikes or regulatory changes that would derail the sectors. Shares of Facebook, Amazon, Netflix, Microsoft and Apple were all up at least 2.5%. Qualcomm shares surged 12.8% after the chipmaker forecast fiscal first-quarter revenue above estimates. General Motors shares gained 5.4% on strong earnings.

ECONOMIC NEWS: US First-Claims For Unemployment Benefits Edge Down To 751,000US first-claims for unemployment benefits edged down to 751,000 in the week ended October 31st, according to a report released by the Labor Department on Thursday, a decrease of 7,000 from the previous week's revised level of 758,000. The Labor Department said the less volatile four-week moving average also dipped to 787,000, a decrease of 4,000 from the previous week's revised average of 791,000. Continuing claims, a reading on the number of people receiving ongoing unemployment assistance, tumbled by 538,000 to 7.285 million in the week ended October 24th.

Fed Expects Rates To Remain Unchanged Until Labor Market Conditions And Inflation Is On Track-The members of the US Fed announced that they decided to keep the target range for the federal funds rate at 0 to 1/4%, as widely expected. The accompanying statement said the Fed expects rates to remain unchanged until labor market conditions have reached levels consistent with the central bank's assessments of maximum employment and inflation has risen to 2% and is on track to moderately exceed 2% for some time.

The Fed also said it plans to increase its holdings of Treasury securities and agency mortgage-backed securities at least at the current pace to sustain smooth market functioning and help foster accommodative financial conditions. In their assessment of the economy, the members of the Fed said economic activity and employment have continued to recover but remain well below their levels at the beginning of the year. Weaker demand and earlier declines in oil prices have been holding down consumer price inflation, the central bank added. The Fed also said overall financial conditions remain accommodative, in part reflecting policy measures to support the economy and the flow of credit to U.S. households and businesses.

CURRENCY NEWS: Major currencies were firmer against the greenback in the US trade. The Euro rose to near US$1.1830 at the US close. The Aussie dollar was near US72.85 cents at the US close. And the Japanese yen firmed from 104.45 yen per US dollar to JPY103.50 at the US close.

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