US election results catch investors off guard as 'blue wave' trade unravels

Fading expectations of a decisive US presidential election win for Joe Biden have boosted government bonds and the shares of big US tech stocks, as investors cut back on trades based on the assumption of a “blue wave” Democratic sweep of the White House and Congress.
 

The S&P 500 advanced 1.6 per cent in early trading in New York, led by technology stocks rather than the economy-sensitive shares that had been favoured to climb in a “blue wave” scenario. The Nasdaq Composite, which has far outpaced the wider S&P 500 this year, snapped 2.7 per cent higher. Investors also rushed