Markets rise on election progress, Senate to refocus on stimulus: The news and your money

Stocks soar as results of the presidential election come in, the Senate expects to focus on a new economic stimulus package, and 751,000 Americans newly filed for unemployment. Here's how the headlines could affect your money.

The market rose sharply Wednesday as election results trickle in. The three major indexes were all up more than 2% Thursday morning as well.

As votes in key states continue to be counted, some economists say a divided government could be good for the stock market, as each party would keep the other in check regarding issues such as tax increases, health-care reform, and regulating Big Tech.

"It looks likely that we'll see a split Congress, which, based on history, has been the preference of the stock market," Lindsey Bell of Ally Invest, told CNBC. "You can see this expectation being priced into the market [Wednesday] with health care, communication services, and technology stocks leading the market."

Senate Majority Leader Mitch McConnell said Wednesday that when the Senate reconvenes next week, its top priority will be passing a new economic stimulus bill.

Pre-election negotiations were unsuccessful. House Speaker Nancy Pelosi had advocated for the Senate to vote on the House-approved $2.2 trillion bill, but Treasury Secretary Steven Mnuchin didn't want to go higher than $1.8 trillion.

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Regardless of the eventual presidential election results, another stimulus bill will most likely be delayed until at least January, according to Tax Foundation Senior Policy Analyst Garrett Watson. 

A total of 751,000 American workers filed for unemployment for the first time in the week ending October 31, according to the Department of Labor's jobless report released Thursday.

That figure is lower than the 758,000 claims reported last week, but higher than the 741,000 number economists were expecting. It marks the third straight week that claims were below 800,000. 

Closely contested races in the House and Senate could ultimately end with a divided government, meaning control of the executive branch and the legislative branch is split between two parties and neither holds a clear majority. 

Although the daily news can have an impact on your wallet, remember to take a long-term outlook when it comes to decisions on spending, saving, and investing.

More from Grow:

• More coronavirus stimulus unlikely before the election: What can you do now?
• What to expect from the market if Trump or Biden wins the 2020 election, according to experts
• Why you don't need to fear market volatility around the election