S&P 500 and Nasdaq Composite rally above 50-day moving average early Wednesday as 2020 presidential race remains tight

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The S&P 500 index and the Nasdaq Composite were trading sharply higher Wednesday morning, pushing the main equity benchmarks above their short-term average as investors processed a presidential race that was too close to call and a congressional race that appeared to deflate the prospects for an expected Democratic majority in both the Senate and the House. The S&P 500 was up 1.2% early Wednesday at 3,408, which puts the broad-market benchmark above its 50-day moving average at 3,399.18, according to FactSet data. The technology-heavy Nasdaq Composite Index , meanwhile, was trading 2.3% at 11,414, with its 50-day moving average at 11,295.80. Neither equity gauge has traded above that level, viewed as a dividing line between bearish and bullish momentum in an asset by market technicians, since late October. The vote between Trump and Biden is shaping up to be one of the closest presidential races in recent memory, and the lack of a sweeping victory by Democrats in the Senate has created doubts about Biden’s mandate to push for further fiscal relief to combat the COVID-19 pandemic or enact regulations that might limit the growth of technology companies, market experts said. The results for the election could take days or weeks to be determined. Meanwhile, the Dow Jones Industrial Average was up 0.9% at 27,729, at last check, with its 50-day moving average at 27,890.34.
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