Stocks jumped on Tuesday as investors hoped a clear winner would emerge from the U.S. presidential election and a delayed, or contested, result would be avoided.
The Dow Jones Industrials raced ahead 554.98 points, or 2.1%, to 27,480.03. Walgreens Boots Alliance and JPMorgan Chase both gained more than 4% to lead the blue-chip Dow higher. Industrial and financials were the best-performing sectors in the S&P 500, gaining more than 2% each.
The S&P 500 jumped 58.92 points, or 1.8%, to 3,369.16. . Industrial and financials were the best-performing sectors in the S&P 500, gaining more than 2% each. It was the second-best Election Day performance for the S&P 500 on record.
The NASDAQ heightened 202.96 points, or 1.9%, to 11,160.57.
Heading into Tuesday’s vote, former Vice President Joe Biden held a lead in national polling over President Donald Trump. The former vice president earned 52% of support from registered voters compared to 42% for the president, according to a Wall Street Journal poll from Sunday. In swing states, where the election will be decided, polling averages are tighter than the national polls.
Stocks also got a boost after manufacturing activity in October jumped to its highest level in more than two years, pointing to a resilient economy in the face of the coronavirus. The Institute for Supply Management Manufacturing Purchasing Managers Index rose to 59.3, a reading that indicates the percentage of companies reporting that activity expanded during the month.
In addition to the presidential election, the U.S. is also facing a surge in Covid-19 cases. Coronavirus cases in the U.S. continued to rise over the weekend, with more than 81,400 new infections recorded on Sunday, according to Johns Hopkins data. That brings the seven-day average of new cases past 81,000 for the first time ever, according to an analysis of Johns Hopkins data.
After the bell Monday, Royal Caribbean cancelled all of its sailings through the end of the year. The shares fell slightly in after hours.
Prices for the 10-Year Treasury sagged, pushing yields up to 0.90% from Monday’s 0.85%. Treasury prices and yields move in opposite directions.
Oil prices hiked $1.02 at $37.83 U.S. a barrel.
Gold prices picked up $15.90 to $1,908.30