US stocks see major tech-led surge as investors digest election uncertainty

• US stocks surged on Wednesday morning even as the outcome of the US presidential election remained up in the air.
• Technology stocks led the move higher as a Republican-controlled Senate seemed likely, which would dim the likelihood of an antitrust breakup of mega-cap tech companies.
• Watch major indexes update live here.

US stocks climbed on Wednesday even as the outcome of the US presidential election remained up in the air.

Overnight trading in the equity-futures market was volatile as vote counts rolled in and results seesawed between President Donald Trump and Joe Biden.

Technology stocks consistently outperformed overnight and on Wednesday morning. Investors likely think that a divided government with a Republican-controlled Senate means an antitrust breakup of mega-cap tech companies is less likely.

Here’s where US indexes stood shortly after the 9:30 a.m. ET market open on Wednesday:

• S&P 500: 3,422.29, up 1.6%
• Dow Jones industrial average: 27,713.07, up 0.9% (233 points)
• Nasdaq composite: 11,467.48, up 2.8%

Read more: Famed economist David Rosenberg told us 4 crucial trends won’t change no matter how the elections go. Here’s how to invest in them all.

Cannabis stocks traded lower on Wednesday despite four US states voting to legalize the drug for recreational sales. Investors view a swift federal legalization of the drug as less likely with a divided government.

The prospect of a Republican-controlled Senate also led to a spike in fossil-fuel stocks and a drop in green-energy stocks on Wednesday morning.

Treasury yields dove as investors fled to the relative safety of government bonds, while the US dollar gained against a basket of other major currencies.

The billionaire investor Chamath Palihapitiya said the too-close-to-call election results meant Democrats needed to do some soul-searching as it becomes clear that America is as divided as ever.

Read more: Iconiq Capital, which counts some of the world’s most influential families as clients, broke down the investment implications of the US election. Here are the highlights of its 23-page presentation.

“I think in many ways the Democratic Party has shot themselves in the foot,” because even if Biden wins, it would not be definitive, Palihapitiya said.

Election results in California led to a surge in shares of Uber and Lyft. Proposition 22 is projected to pass in the state, allowing gig-economy companies to continue classifying workers as independent contractors rather than employees.

Oil prices rose. West Texas Intermediate crude climbed as much as 3.4%, to $38.92 per barrel. Brent crude, oil’s international benchmark, jumped 3.2%, to $40.97 per barrel, at intraday highs.

Gold traded lower on Wednesday, falling as much as 1.4%, to $1,883.13 per ounce.

Read more: The ‘Blue Wave’ in the US election didn’t happen. Here’s how a UBS investment chief believes investors can trade short-term market volatility and protect their portfolios in the long term