FX.co ★ Markets are awaiting the results of the US presidential elections

The markets are about to see the initial results of the US presidential elections, as almost 100 million Americans have already cast their votes ahead of schedule. However, the final results will be somewhat delayed due to the counting of votes being sent by mail, and in addition, during the rallies over the weekend, Donald Trump hinted that he will challenge the results if he loses the elections.

As of Monday, the Dow Jones index reached a double-digit high, closing at 1.6%. Even the S&P 500 index rose by 1.23%. However, shares of technology companies, being under significant pressure, showed growth of only 0.42%.

Today, market participants expect short-term trading volatility in anticipation of the results of the US presidential elections, especially since the final results could trigger major changes in the system of taxation and government spending in the United States. Aside from that, the sphere of trading will face significant changes as well, depending on who wins the race in the end.

At the latest opinion polls, Joe Biden is leading with a huge gap. For example, in the Quinnipiac poll, Biden got a whopping 50% while Trump got 39%. However, polls may well be erroneous, and in some undecided states, the percentage difference between the two candidates is extremely small.

But admittedly, the market, as a whole, is betting on Joe Biden's victory. In this case, the Democrats will be in control of the Senate, on which Biden promises to agree on more stimulus and regulation for the US economy.

Trump, on the other hand, favors less stimulus but promises to support the country's infrastructure.

With regards to Biden's victory, restaurant stocks could decline sharply, especially since the Democrat candidate favors the establishment of a minimum wage of $15 per hour. Such would put pressure on chains such as The Cheesecake Factory, The Wendy's Co. and Chipotle Mexican Grill, mainly because they will have to raise prices on the menu and, accordingly, could lose customers. But aside from that, there are also positive effects of Biden's presidency: the promise of better incentives that would ultimately help restore economic stability.

The automotive industry, especially the used car sector, will also receive favorable effects from Biden's presidency, as the new incentives, which Biden promises to implement to a large extent, play into the hands of further purchases in this area.