this S&P 500 Index Stocks rose strongly on Tuesday as traders awaited the results of the high-stakes U.S. presidential election.
The broader market index rose 1.2%, Nasdaq Composite Index up 1.4%. this Dow Jones Industrial Average It rose 425 points, or about 1%.
The race between former President Donald Trump and Vice President Kamala Harris is expected to be fierce. It remains to be watched closely which party dominates Congress, given that a Republican or Democratic sweep could lead to big changes in spending or major adjustments to tax policy. (Follow CNBC’s 2024 election live blog here.)
The results could have a significant impact on where stocks end the year, but investors may want to prepare for near-term volatility. CNBC Data goes back to 1980 Shows that the major averages rise between Election Day and the end of the year, but typically fall on Election Day and the week after. Uncertainty about the outcome could lead to more market volatility.
Alicia Levine, head of investment strategy and equities at Wealth Bank in New York, said: “No matter what happens tonight, we are optimistic about the market. We think Congress will be a divided Congress. This will be the most Positive things”, in”scream box“.
So far, there have been no clear election bets on the stock market on Tuesday. Bank stocks, which will benefit from deregulation under Republican control, edged higher. The SPDR S&P Bank ETF (KBE) rose 1.2%.
shares NVIDIA Up 3%, but the chipmaker and bullish stalwart appears to be unaffected regardless of the election outcome. Tesla Tesla shares rose 4%, although the stock could be viewed as benefiting from a Democratic or Republican victory given Chief Executive Elon Musk’s close relationship with Trump.
In addition to the election, investors are also awaiting the Federal Reserve’s November interest rate decision on Thursday and Chairman Jerome Powell’s latest comments on the Fed’s future policy moves. Following a half-percentage-point rate cut in September, traders see a 98% chance of a quarter-percentage-point rate cut, according to traders CME Group’s FedWatch Tool.
The S&P 500 is up more than 20% so far this year, an unusually strong run-up to the election and up about 2% from its all-time high.
