Stock futures, oil prices bounce after Trump’s falsely asserts he won

U.S. futures bounced and European shares were lower Wednesday after President Donald Trump, in an early morning appearance at the White House, made premature claims of victories in several key states.

Wall Street futures were jolted by the news but recovered some lost ground. Oil prices likewise rebounded. Investors appeared to be adopting an optimistic stance on the election’s still undecided outcome.

Dow futures were flat after falling 1.5% following Trump’s announcement. The S&P 500 future contract rose 0.6% after dropping 1.1%.

Republican Donald Trump said, “Frankly, we did win this election.” That assertion did not match the results and information available to the AP. At the time, neither candidate had secured the 270 electoral college votes needed to claim victory.

Trump said he would take the election to the Supreme Court. It was unclear exactly what legal action he might try to pursue, but a contested election is among the worst scenarios anticipated by investors hoping for an end to the uncertainty after a long, bruising campaign.

As of 4 a.m. Eastern time, Trump and his Democratic challenger Joe Biden still were locked in tight races in a handful of battleground states.

Most polls had predicted a Biden victory, and many investors took the forecasts of a so-called “blue wave” of Democratic Party wins as a signal that the U.S. economy might soon get a big, fresh infusion of help. But with the race too close to call, some analysts said they also might be reassured by the prospect for a continuation of Trump’s pro-market stance.

“Markets seem to be pricing in better chances for Trump, or at least a smaller chance of a blue wave,” Stephen Innes of Axi said in a commentary.

“On the one hand with the fiscal implications of a Biden win/blue wave that’s a bit of a surprise -– on the other Trump is widely considered more market-friendly, so one can see how it nets out a small positive,” Innes said.