Reuters U.S. stock futures slipped on Friday as investors locked in some gains after a more than 7 rally on Wall Street this week, while Democrat Joe Biden took a narrow lead over President Donald Trump in the battleground state of Georgia for the first time.
Winning Georgias 16 electoral votes would put the former vice president on the cusp of the 270 he needs to secure the presidency, even as Trump falsely claimed the election was being stolen from him.
The large bounce in equities this week creates an opportunity for investors to reassess and rebalance their portfolios in preparation for a President Biden and divided Congress, said Mark Haefele, chief investment officer at UBS Global Wealth Management.
The benchmark SP 500 is on course for its best week since April, while the techheavy Nasdaq has jumped 6.5 since the Nov. 3 election as the prospect of a policy gridlock in Washington eased worries about tighter regulations on companies.
Matt Sherwood, head of investment strategy at Perpetual in Sydney, said markets had already moved to price in a Biden presidency and a divided Congress.
We can get all of the good things about a Biden presidency, such as stable leadership and foreign policy, without any of the bad things from the far Left of his party, such as taxation, he said.
At 522 a.m. ET, Dow eminis were down 242 points, or 0.86, SP 500 eminis were down 37.25 points, or 1.06, and Nasdaq 100 eminis were down 175.25 points, or 1.45.