Rally Runs out of Steam, Futures Lurch Lower

U.S. stock futures sank early Friday as Wall Street eyed its best week since April even as the results of the presidential election remained unclear.

Futures for the Dow Jones Industrials staggered 226 points, or 0.8%, to 28.071.

Futures for the S&P 500 docked 33.5 points, or 1%, at 3,471.25.

Futures for the NASDAQ Composite slumped 136.25 points, or 1.1%, to 11,940.25.

Wall Street was coming off its fourth-straight positive session on Thursday and the major averages were on track for their best week since April 9. The S&P 500 and the Dow are up 7% so far this week. The tech-heavy NASDAQ Composite has led the way with a nearly 9% gain.

The sharp rally follows a slump in the prior week.

The surge in stocks has come despite lingering uncertainty about the outcome of Tuesday’s election. Democratic nominee Joe Biden leads with 253 electoral votes, according to media projections, while President Donald Trump has 214.

Votes are still being counted in several key states including Nevada, Arizona, Pennsylvania and Georgia. Some media outlets say Biden has taken a slight lead in Georgia while Trump’s advantage in Pennsylvania has become narrower.

On the economic front, Friday will bring a fresh look at the labour market for investors, with the U.S. Labor Department’s October jobs report scheduled to be released before the bell. The report comes on the heels of disappointing readings for ADP private payrolls and initial jobless claims.

Overseas, in Japan, the Nikkei 225 index gained 0.9%, while in Hong Kong, the Hang Seng index eked up 0.1%.

Oil prices staggered $1.16 to $37.63 U.S. a barrel.

Gold prices gained $7.30 to $1,929.60.