Wall Street has been warming to the idea that a Joe Biden presidency would be bullish for stocks.

However, there are strings attached: His victory needs to be accompanied by a “blue wave” that sweeps Democrats into the majority of both the Senate and House of Representatives.

Those strings now look a bit frayed, as investors watch the probability of Democratic control of the Senate dwindle to that of a coin toss according to some metrics. And with it, so go the chances of a massive fiscal stimulus early next year that bulls were counting on to take stocks to new heights. The re-acceleration of Covid-19 cases in the US and Europe underscores the renewed economic threat from the virus, with the S&P 500 plunging almost 6% in its worst week since March.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook