Treasuries rose, the dollar climbed while S&P 500 futures dropped as comments from President Donald Trump revived concern about a contested U.S. election.
Futures on the S&P 500 sank as low as 1.3%, trimming an earlier advance. Ten-year Treasury yields dropped to 0.77% and the dollar advanced against peers. The offshore yuan and Mexican peso retreated and gold slipped. European futures fell.
In comments to supporters, Trump claimed victory and asked for the Supreme Court to intervene to stop vote counting. He said on Twitter earlier that he was ahead and Democrats were trying to steal the election.
Biden scored initial wins in traditionally Democratic states in the eastern U.S. while Trump won Republican strongholds in the South and Midwest, according to the Associated Press and networks. Trump won Florida, a crucial prize in the race to the White House that closed off former Vice President Biden’s hopes for an early knockout in the election.
Still, Biden said he feels good about his chances to win the presidency, cautioning supporters early Wednesday morning that it would take time to finish counting the votes.
“Early prospects for a quick resolution to the U.S. election have given way to the reality of an extended process, not only with regards to the White House but also the Senate,” said Ian Lyngen, a strategist at BMO Capital Markets. “Volatile price action can only be expected to persist for the time being, at least until the path forward becomes clearer.”
Correction and update, November 4, 2020: This post has been updated to make clear in the headline that it was the S&P 500 futures that fell immediately after Donald Trump’s early-morning press conference in which the president said he would get the Supreme Court to intervene and stop the vote count.
