Wall Street Surges at Open as Biden Edges Ahead in Tight Race

U.S. stock markets opened sharply higher on Wednesday as Joe Biden edged ahead in a presidential election that failed to produce a clear winner overnight.

With most votes counted, the Democratic former vice-president had overturned early deficits to enjoy wafer-thin advantages in the crucial swing states of Wisconsin and Michigan. If he wins these two and the state of Nevada, where counting is also still ongoing, his victory would be more or less assured.

However, stocks have also responded positively to signs that the Senate will stay in Republican hands, reducing the prospect of a hefty increase in capital gains tax under a unified Democratic Congress.

By 9:37 AM ET (1437 GMT), the Dow Jones Industrial Average was up 117 points, or 0.4%, while the S&P 500 was up 1.1% and the Nasdaq Composite was up 2.8%.