Huge buyers see a terrific backdrop for shares when the election outcomes are available in

“Fearless Girl”, a bronze sculpture by Kristen Visbalthe, can be seen on November 4, 2020 in New York with a voting sticker in front of the New York Stock Exchange in the Wall Street Financial District of Manhattan.

I have Betancur | AFP | Getty Images

Big money investors get excited about the stock market as US election results keep rising.

CNBC’s Scott Wapner spoke to some major investors who told him we could be on the verge of a great scenario for stocks as former Vice President Joe Biden leads President Donald Trump and Republicans are expected to keep control of the Senate.

With the government so divided, these investors are more confident that taxes will not rise much. An investor also told Wapner that a split government means that there will be no massive government spending “to drive the bond market crazy”.

Shares have rallied in the two meetings since election day. On Thursday alone, the Dow Jones Industrial Average rose more than 400 points, achieving the best weekly performance since April, along with the S&P 500 and Nasdaq Composite.

In the elections, yields rose for the Treasury Department in the expectation that a so-called blue wave formed by a Democratic President and Congress would, among other things, create a huge fiscal stimulus. Yields returned sharply after the election.

Before the elections, market participants had largely priced in a blue wave. Along with a greater incentive, some investors believed it could also lead to stricter regulations for technology and energy companies, as well as higher taxes.

With a divided government, however, these concerns would be greatly reduced. And a Biden presidency probably wouldn’t escalate the China trade war, which has created volatility in the markets, especially in technology stocks.

“Now what I like about the Biden win … is that we don’t get Biden; we get Biden Lite,” Kevin O’Leary, chairman of the O’Shares ETFs, told CNBC’s “Mid-Term Report” on Thursday. “That means no dramatic tax increases, nothing happens in the regulatory environment [and] not a green New Deal. “

This would be “just a minor change of course, with no drama and tragedy in terms of massive changes,” he added.

NBC News predicts that Biden was only 17 votes away from Electoral College to defeat Trump. However, the major battlefield states of Arizona, Nevada, Georgia, Pennsylvania, and North Carolina have not yet been selected for either candidate.

Meanwhile, if more votes were counted, it became more and more likely that Republicans would retain a majority in the Senate.

“I think a purple convention is a much better outcome than a straight blue wave,” said Jon Najarian, Co-Founder of MarketRebellion.com and a CNBC contributor. This “only significantly reduces the risk and therefore flows back money” into stocks.

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