Stocks rise again on expectations of divided US government

NEW YORK: Wall Street stocks rose for a fourth straight day early Thursday, shrugging off uncertainty over the US presidential contest and a grim new record US coronavirus cases.

Analysts say the rally seems to be built on expectations for more benign regulatory and tax policy following Tuesday's elections, with divided government expected to continue in Washington.

About 15 minutes into trading, the Dow Jones Industrial Average was up 1.6 percent at 28,295.42.

The broad-based S&P 500 gained 1.8 percent to 3,506.94, while the tech-rich Nasdaq Composite Index jumped 2.2 percent to 11,843.00.

While there is still no official winner of the US presidential contest, former Vice President Joe Biden is within striking distance of achieving 270 electoral votes following victories in key swing states Michigan and Wisconsin.

But analysts expect the Republicans to maintain control of the Senate, although again the final results depends on a couple of outstanding contests, including one that will not be decided until January.

"What the market knows and what it believes, though, rests strongly on the premise of there being a split Congress, so it is key for the market, in light of its post-Election Day response, that it stays that way," said Briefing.com analyst Patrick O'Hare.

Meanwhile, economic data released Thursday showed new applications for unemployment benefits last week held essentially steady at 751,000, rather than declining as expected.

The data was released one day after the United States reported more than 99,000 new coronavirus cases, worsening what is already the world's largest outbreak.

Against this backdrop, the Federal Reserve will conclude a two-day policy meeting today at which will be watched for any signal of the central bank's willingness to roll out new tools to help the economy, as it continues to emphasize the need for more fiscal stimulus from Congress.