Nasdaq May Challenge All-Time Highs as Bidden Takes a Lead

WikiFX News (9 Oct.) - With less than four weeks to go before the U.S. presidential election, polls show Biden's lead over Trump is expanding; the Nasdaq Composite is testing key technical levels and is on track to challenge all-time highs.

Biden's approval has been rising partly out of the public's dwindling confidence in Trump's ability to cope with issues. Ipsos polling data shows that Biden has far outperformed Trump on key issues such as health care and COVID-19.

In addition, Trump recently announced that he would not continue the talks with Democrats on the stimulus bill until the end of the election, but later softened his stance and prepared to sign a stimulus bill involving $1,200 checks issued to taxpayers. The approaching election pushes Trump more unpredictable, which in turn increases the uncertainty in the outcome.

From a market perspective, uncertainty can lead to potential volatility. After rebounding over 10% from the July low of 10,519.5, the Nasdaq Composite seems to go back at the key level of 11,449.3, where a breach below may open the door to challenge the all-time high of 12074.1

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Chart: Polling data from Ipsos