Goldman Sachs, Deutsche Bank Tie Futures Rebound to Hedge Closures

U.S. stock futures reversed an election-night slide after midterm election results came in, as Goldman Sachs and Deutsche Bank analysts tied the rebound to investors closing pre-election hedges and lower political risk premiums. Democrats regained control of the House and Senate. Nasdaq-100 futures fell 2.4% during election night, then turned to a 0.9% gain, recovering about 929 points from the session low. S&P 500 futures gained about 1%, while Dow futures rose roughly 700 points. The banks attributed much of the recovery to investors unwinding hedge positions established before the vote once the results became clear.

Source: TokenPost