TORONTO — North American stock markets posted solid gains in late-morning trading even amid the uncertain outcome of the U.S. presidential election with the results of several key battleground states still to come.
“This morning we’re getting a bit of a burst of enthusiasm,” Colin Cieszynski, chief market strategist at SIA Wealth Management, said Wednesday morning.
However, Cieszynski was cautious about how long it would last.
“We’re still in a very uncertain time on a number of fronts, so yes we’re getting a relief rally here but how sustainable it will be is very questionable,” he said.
President Donald Trump and Democratic challenger Joe Biden were locked in a tight battle in three key battleground states. Results in Wisconsin, Michigan and Pennsylvania were too close to call.
In Toronto, the S&P/TSX composite index was up 121.72 points to 16,060.87.
The Dow Jones industrial average was up 595.09 points to 28,075.12.
The S&P 500 index was up 92.39 points to 3,461.41, while the Nasdaq composite index was up 424.68 points to 11,585.28.
Cieszynski said the biggest moves were tied to shares of Uber Technologies Inc. and Lyft Inc., which soared more than 10 per cent after voters in California backed a proposal to have the drivers considered independent contractors, rather than employees.
Meanwhile, the U.S. dollar had some sizable swings overnight but has ended up flat.
Cieszynski said currency market investors appear to be taking a wait-and-see approach.
“The U.S. dollar has been holding steady, the commodities were picking up a little bit as well today crude oil is up so overall in the overall so far the market seems to be taking the results fairly well,” he said.
The Canadian dollar was trading at 76.10 cents US compared to an average of 76.07 cents US on Tuesday.
The December crude contract was up 79 cents at US$38.45 per barrel and the December natural gas contract was down four cents at US3.02 per mmBTU.
The December gold contract was down US$10.80 at US$1,899.60 an ounce and the December copper contract was up two cents at US$3.11 a pound.
This report by The Canadian Press was first published Nov. 4, 2020.
