U.S. stock markets closed sharply higher on Tuesday, awaiting the outcome of the U.S. Presidential elections. Moreover, investors’ sentiment was also buoyed by positive economic data. All three major stock indexes ended the day in green.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rallied 2.1%, or 554.98 points, closing at 27,480.03, continuing its 2-day winning streak. Notably, 27 components of the 30-stock index ended in green while 3 finished the day in red. The blue-chip index is 3.7% below to become green year to date.
The tech-heavy Nasdaq Composite closed the day at 11,160.57, up 1.9% or 202.96 points, marking second successive day of gains, backed by strong performance from large-cap technology stocks. Shares of Microsoft Corporation
MSFT
, Apple Inc.
AAPL
and Facebook, Inc.
FB
rallied 2%, 1.5% and 1.5%, respectively. Microsoft carries a Zacks Rank #2 (Buy). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
.
Meanwhile, the S&P 500 gained 1.8%, closing the day at 3,369.16, maintaining 2-day winning run. The Industrials Select Sector SPDR (XLI) and the Financials Select Sector SPDR (XLF) popped 3% and 2.2%, respectively. Notably, ten out of eleven sectors of the benchmark index closed in the positive zone and one in red.
The fear-gauge CBOE Volatility Index (VIX) was down 4.3% to 35.55. A total of 8.92 billion shares were traded on Tuesday, lower than the last 20-session average of 9.02 billion. Advancers outnumbered decliners on the NYSE by a 4.23-to-1 ratio. On Nasdaq, a 4.11-to-1 ratio favored advancing issues.
Outcome of Presidential Election Awaited
Wall Street closed Tuesday on a positive note preparing for the outcome of the presidential election. Investors remain observant of the results which will determine the course of policy measures and further fiscal relief in order to boost the economy.
The winner for the race of White House as well as the election outcome of the shape of the U.S. Congress, both the Senate and the House of Representatives, will determine several key economic issues and financial policy variables. This include the decision regarding a fresh fiscal stimulus, government’s tariff policies, especially with China, deregulations and tax related issues and geo-political strategies.
Economic Data
The U.S. Census Bureau reported that factory orders increased 1.1% in September, the fifth successive month of gains, compared to 0.6% growth in August (revised), beating the consensus estimate of 0.9% increase.
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