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US stocks rally as investors brace for presidential election outcome

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US stocks rallied Tuesday as Wall Street awaited the results of a closely contested presidential race.

The Dow rose over 425 points, or 1%; the S&P 500 gained 1.2%; and the tech-heavy Nasdaq climbed 1.4%, all underscoring investor optimism as Americans cast their ballots. “The market appears to be in an anticipatory relief rally now that the election is here,” said Louis Navellier of Navellier & Associates in a note to investors Tuesday. “While it’s still anyone’s call on where the chips will fall on the election, putting it behind in either direction is a relief.

Bush and Al Gore famously dragged on for more than a month. The prospect of a delayed or contested result could amplify market swings. “With Election Day finally here, expect more market volatility, particularly if the wait for a result is long or contested. Political divisiveness presents a risk to investor sentiment,” said Adam Turnquist, chief technical strategist for LPL Financial. “Though having gone through the ‘hanging chads’ of the Bush vs.

 

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