The stock market is sending signals that a Biden-led blue wave is getting less certain, says one Wall Street strategist
- While the polls suggest a blue wave victory is in reach for Democrats this November, the stock market isn’t so sure, according to a note from Evercore ISI.
- Wall Street strategists have been forecasting that a blue wave would likely be positive for stocks on hopes of a large stimulus deal shortly after the election, which would help spur a surge in value and cyclical stocks.
- But this week’s rotation out of value and into tech suggests that chances of a blue wave in November are less likely, according to the note.
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Wall Street is increasingly expecting a blue wave victory for Democrats this November after the polls close, which would likely lead to the reflation trade: a surge in cyclical and value stocks at the expense of technology and growth stocks.
But recent trading activity in the stock market suggests odds of a blue wave are less likely, according to a Tuesday note from Evercore ISI.
Specifically, this week’s rotation out of small cap and value and into large cap and growth could be chalked up to declining odds of a Democratic sweep, according to the note.
The firm pointed to the October surprise in North Carolina’s Senate race between Republican Thom Tillis and Democrat Cal Cunningham as evidence for declining chances of Democrats overtaking the Senate.
“The Democratic ‘dream fiscal program’ odds are lower,” Evercore said as explanation for what is driving the rotation back into tech.
Read more: Jeff James has crushed the market this year thanks to a stock pick that’s soared 1,155%. He shares another bet he expects to deliver similar returns – and lays out 3 additional opportunities in tech.
The firm did concede that other factors could be moving tech stocks, including excitement around
This story is part of , our full coverage of the latest news from Apple headquarters.
Apple’s next iPhone may come in blue, according to a last-minute rumor from well-known device leaker Evan Blass, who posted that tidbit to the internet shortly before the company’s.
In his post on the app Voice, which pitches itself as an alternative social network to Twitter that authenticates people are real, Blass showed off what appear to be Apple marketing images for the iPhone 12 Pro Max. He said the phones would come in blue, gold, graphite and silver. Apple didn’t immediately respond to a request for comment.
The new devices, which are being called the iPhone 12 by the Apple community though the company hasn’t confirmed their names, are expected to be announced Tuesday alongside a possible new smaller smartphone,, as well as a , among other things.
CNET’s editors will be covering the event live as it happens, and you can follow along.