U.S. small caps joined in the broad market rally in the days after Election Day as investors priced in the likelihood of a divided Washington with Democrat Joe Biden president and Republicans maintaining their Senate majority.
However, smaller companies remain likely to bear the brunt of the pandemic, which is reaching record levels in the United States. U.S. coronavirus cases surged by more than 120,000 on Thursday, according to a Reuters tally, the second consecutive record daily increase as the virus spreads throughout every region of the country. Twenty of the 50 states reported record increases Thursday.
Progression in stimulus talks and the number of coronavirus case counts will likely dictate the path of small cap stocks in the weeks ahead because Biden would not take office for another two months, said Esty Dwek, head of global market strategy at Natixis Investment Managers.
No. If JoeBiden wins the market will plummet