Election Day Boosts US Stocks with Nasdaq 100, Tech, and Crypto Stocks Leading Gains
Broad Wall Street Gains on Election Day
Wall Street’s primary indices posted gains as voting kicked off in a closely contested U.S. presidential election. The uncertain election outcome, with recent polls showing a tight race between Republican candidate Donald Trump and Democratic contender Kamala Harris, is likely to influence market volatility in the coming sessions.
While volatility was most notable in bonds and currency markets, equity markets were relatively stable, underpinned by solid corporate earnings and robust economic data that support a favorable long-term outlook.
On the day, all 11 sectors in the S&P 500 rose, with notable gains in Industrials, Consumer Discretionary, and Information Technology stocks, each up by more than 1.3%. The VIX, Wall Street’s volatility index, eased to 20.24, reflecting a more tempered market sentiment compared to the 2020 election period and recent highs.
Economic Data and Market Sentiment
Tuesday’s optimism was bolstered by stronger-than-expected U.S. services sector data. The Institute for Supply Management (ISM) reported an unexpected rise in the non-manufacturing PMI for October, reaching a two-year high and signaling robust employment growth in the sector. According to Carson Group’s Chief Market Strategist Ryan Detrick, the steady services performance reinforces market confidence in the underlying economic strength.
In addition to the presidential race, the Congressional elections could shape legislative power, with many analysts expecting a divided government that could constrain major policy changes. Traders are particularly attuned to sectors potentially influenced by a Trump victory, with shares of Trump Media & Technology Group and Geo Group climbing 14.4% and 6%, respectively.