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* Banks and construction companies raise prices thanks to stimulating demand
* Wall Street’s fear gauge hits a week’s low
* Down 2.09%, S&P 500 up 1.84%, Nasdaq up 1.84% (New through, updated prices, market performance and mid-afternoon comments; new content, adding data lines NEW YORK materials)
November 3 (Reuters) ̵1; US stocks rallied on Tuesday as Americans voted in one of the country’s most chaotic presidential elections and investors bet that it would be up to that decision. There is no withdrawal process, resulting in a quick deal on more financial stimulus.
Democrat Joe Biden’s lead to Republican President Donald Trump in national polls has raised expectations for a decisive outcome and a post-election stimulus package will do well. Biden’s promises on infrastructure spending.
Some analysts said the strong market rally reflected a rebound from last week’s sell-off, the largest weekly percentage drop for the S&P 500 in more than seven months.
Joe Saluzzi, co-manager of trading at Themis Trading in Chatham, New Jersey, said: “As much as polls say one thing, I think we all know anything that could happen.
“We know if it was Biden there would be more stimulus and at least the system’s attraction at first with that free money, but in the end you raised the corporate tax, you got more. More rules, you’ve got things that the market doesn’t like. “
US stock index futures plunged on Election Night 2016 when it became clear that Trump could win a nasty win over Democrat Hillary Clinton. The standard S&P 500 index has since risen 55% as Trump’s lower tax rates have boosted corporate profits and stock repurchases.
The Dow Jones Industrial Average rose 561.94 points, or 2.09%, to 27,486.99, the S&P 500 was up 60.98 points, or 1.84%, to 3,371.22 and Nasdaq Composite increased 202.02 score, equivalent to 1.84%, to 11,159.64.
The gains were widespread, with 10 of the 11 key S&P sectors on the positive side, led by finance, up 2.57% and industry, up 2.84% while investors bet some into the dominant post-voting volatility in recent weeks. The CBOE Volatility Index hit a one-week low after hitting a 4-1 / 2-month high last week.
Not all of the securities sectors that analysts identify are likely to win from the Democratic sweep have increased, with cannabis and renewable energy companies lower.
Democrats also favorably emerged from the 14 fierce competitions in the US Senate with full control of Congress, though the end result from at least those five contests may not be in for a few. days or months in some cases.
Some see races in the highly disputed states as close enough that Trump can collect the 270 Electoral College votes he needs to stay in the White House for another four years.
The S&P banking sub-index rose 3.06% to its highest level in more than a week, while industrial shares rose, with Caterpillar Inc up 2.34% and Honeywell International Inc up 3.24%.
The number of issues that increased first was higher than the number of discount issues on the NYSE with the rate of 5.04 to 1; on the Nasdaq, a ratio of 3.61 to 1 is in favor of advancers.
The S&P 500 has published 26 52-week highs and 1 new low; The Nasdaq Composite recorded 44 new highs and 25 new lows.
Report by Chuck Mikolajczak; Edited by David Gregorio