Stock futures moved higher on Thursday with the Dow Jones Industrial Average set to open at a record high.
S&P 500 futures were up 0.6%, Dow futures added 0.7%, and Nasdaq futures gained 0.71%.
Markets continued to trade on Tuesday's election results. President-elect Donald Trump won New Hampshire, North Carolina, Florida, and Wisconsin, key battleground states both candidates needed to secure to win the election. Trump won the Electoral College but fell short of the popular vote. Markets had priced in a victory for Democratic candidate Hillary Clinton, a result which would have carried less uncertainty over the types of policies she would implement.
"Our bottom line is that the equity rally from the overnight lows was largely anchored on the fact that the 2016 election actually played out according to historical norms," said Nicholas Colas, chief market strategist at Convergex. "Americans voted, a clear winner emerged and his party converged around him, the loser conceded, and the sitting president gave the customary unity speech. That such a dramatic and divisive election was settled in such a prosaic way was very good news indeed. As for the coming days, we see equities continuing to move higher."
Pharmaceutical stocks were in rally mode after Democrats failed to secure the presidency and Republicans maintained control of the House and Senate. Democrats would likely have reined in rampant price gouging from pharmaceutical companies. Merck (MRK) , Pfizer (PFE) and Sanofi (SNY) moved higher in premarket trading.