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Stocks rise as Americans head to the polls | CNN Business

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This week’s rally seems to be mostly about politics. Investors are betting that Republicans will gain ground in the House and Senate and possibly even win control of both chambers of Congress.

The Dow was up almost 100 points, or 0.2% in late afternoon trading Tuesday. The S&P 500 and the Nasdaq both fell slightly. All three indexes were up more dramatically earlier in the day. But the Dow has now rallied nearly 1,000 points since Friday. Stocks first took off Friday after the jobs report showed solid gains in payrolls but also a slight uptick in the unemployment rate.

Investors are betting that Republicans will gain ground in the House and Senate and possibly even win control of both chambers of Congress. If that were to happen, President Biden and the rest of the Democrats will be faced with a divided government. That could lead to more gridlock, which Wall Street often cheers. Still, stocks have historically tended to rally following elections no matter who is in power or if the White House and Congress are both controlled by the same party.

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Republicans are not just better for business, they are better for everyone VoteRed VoteRepublican GOP

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Yep, Wall Street knows the economy works better without the Dems controlling everything.

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