At Tuesday night (New York time), stock futures were volatile as results of the American Presidential election rolled-in, indicating a tight race between Donald Trump and Joe Biden.
Futures of the Nasdaq-100 index, home to most large tech company stocks, jumped the most by over 3 percent. Meanwhile, S&P 500 futures gained 1.6 percent and Dow Jones Industrial Average was up 0.6 percent.
The swift rally in Nasdaq 100 futures triggered an exchange-mandated two-minute trading pause.
While Biden was ahead of Trump in the polls leading up to Tuesday, the current President looks set to carry several contested battleground states that would be key to his re-election chances. The race for control in the Senate is on as Biden turns to the Midwest for support.
While it is still early and markets will stay volatile throughout the results day, the market often cheers re-election of a candidate, and currently, a runaway-wide margin Biden win does not look lightly.
Volatility has been seen in the market in the week that led up to the election results day as investors hope to avoid a delayed, or contested result so that a clear winner emerges.
While investors are hoping for a relatively quick decision on who will prevail, experts say that a surge in mail-in ballots has made it more likely that some states won't be able to declare a winner on Tuesday. This exposes markets to high volatility as it tries to determine the next president.