US futures moved sharply lower after stocks ended Thursday in the green. Dow futures fell 281 points, or 1%. S&P 500 futures were down 1.2% and Nasdaq futures fell nearly 1.4%. The US dollar was weaker as traders bet on more stimulus from the Federal Reserve in the absence of large-scale financial support from the government.
Vote counts continue to roll in from six states that CNN has yet to call. President Donald Trump's lead has narrowed in the key state of Pennsylvania, and Joe Biden has taken a small lead in Georgia. Trump's campaign has also launched a series of lawsuits in key battleground states. "The market has concluded that gridlock is a friendly outcome," said Stephen Innes, chief global markets strategist at Axi. A divided government suggests less growth and stimulus, but also less tax and regulation, Innes wrote in a note to clients.
The Fed left interest rates unchanged near zero and warned that the coronavirus crisis continues to pose"considerable risks" to the US economy over the medium term.