ToplineAs a Biden win becomes increasingly likely, investors on Wall Street are turning their focus to the possibility of another round of fiscal stimulus, vaccine data for phase-three candidates and potential central bank measures to boost economic activity and keep inflation in line with targets. Vaccination is "essential for the normalization of the economy" amid the pandemic, Goldman Sachs ... [+] said in a recent note. Fiscal stimulus to state and local governments is now expected to be less generous than under a Blue Wave scenario, UBS noted on Wednesday. Key BackgroundThe election outcome that Wall Street thinks is now most likely–a Biden victory and a split Congress–"couldn’t have been better for stocks," Crisafulli noted on Thursday–a sentiment echoed by many Wall Street experts since Wednesday given that a splint Congress makes it unlikely Biden's proposed corporate tax hike becomes law. The economic recovery, on the other hand, remains sluggish and awash with disparities such as continued job losses despite better-than-expected corporate earnings (especially in tech).

Source: Forbes November 05, 2020 19:41 UTC