STOCKS RALLY WORLDWIDE AS U.S. ELECTION STARTS
Stocks powered higher Tuesday as investors hope the end of a bruising US presidential campaign may soon lift the heavy uncertainty that’s sent markets spinning recently, Stan Choe and Damian J. Trose reported for Associated Press (AP.)
The S&P 500 rose 58.92 points, or 1.8%, to 3,369.16 for its second straight healthy gain. The rally was widespread and global, with Treasury yields, oil prices and stocks around the world all strengthening. The Dow Jones Industrial Average climbed 554.98, or 2.1%, to 27,480.03, and the Nasdaq composite added 202.96, or 1.9%, to 11,160.57.
More than anything, what investors hope for from the election is a clear winner to emerge, even if it takes some time for all the votes to be tallied. Whether that’s President Donald Trump or former Vice President Joe Biden is less important, because history shows stocks tend to rise regardless of which party controls the White House.
“The markets are neither red nor blue, and today they’re decidedly green,” said Rod von Lipsey, managing director at UBS Private Wealth Management. What investors fear is the prospect of a contested election, one that drags on and injects even more uncertainty into markets. Under such a scenario, much of Wall Street expects a sharp drop in stocks. The future political makeup of the Senate is another unknown throwing uncertainty into the markets, along with the timing of a possible COVID-19 vaccine.