U.S. stock markets closed higher on Tuesday as investors awaited the outcome of the presidential election. The Nasdaq Composite increased by 1.4% to reach 18,439.2, the S&P 500 gained 1.2% to 5,782.8, and the Dow Jones Industrial Average rose 1% to 42,221.9. Gains were observed across all sectors, with consumer discretionary and industrials leading the way.
Voters in the United States cast their ballots for the next president, with Vice President Kamala Harris representing the Democratic Party and former President Donald Trump as the Republican nominee. Wall Street paid close attention to key swing states, with market fluctuations anticipated until clear results are available. Analysts suggested it could take several days before the outcome is confirmed.
“The U.S. presidential election is likely to come down to a few thousand voters across a handful of swing states,” said the Wells Fargo Investment Institute.
The yield on the U.S. two-year Treasury rose by 2.1 basis points to 4.2%, while the 10-year yield fell by 1.8 basis points to 4.29%.
In economic updates, the U.S. services sector maintained its expansion in October. The Institute for Supply Management reported faster growth, while S&P Global (SPGI) indicated a slight slowdown.
“Given that new orders and business activity remain robust, consumer spending is expected to support growth through the fourth quarter and into next year,” said TD Economics.
Friday’s data from the ISM and S&P Global showed that the U.S. manufacturing sector remained in contraction last month due to weak output.
The U.S. trade deficit expanded in September as imports of goods increased and exports of both goods and services decreased, according to government figures released on Tuesday. Oxford Economics noted, “The election results could create upward pressure on imports if importers anticipate potential tariff hikes under a Trump administration.”
West Texas Intermediate crude oil rose 0.9% to $72.11 per barrel.
In corporate news, Palantir Technologies (PLTR) shares surged nearly 24%, becoming the top performer in the S&P 500, following strong third-quarter earnings and an upward revision of its full-year forecast driven by rising demand for artificial intelligence. GlobalFoundries (GFS) was the biggest gainer on the Nasdaq, with a 15% increase after better-than-expected third-quarter results.
Celanese (CE) saw its shares drop 26%, making it the worst performer on the S&P 500, due to disappointing third-quarter results. NXP Semiconductors (NXPI) also faced a decline of 5.2%, ranking among the biggest losers on both the S&P 500 and Nasdaq, as its third-quarter results fell short of the previous year and its fourth-quarter outlook disappointed market expectations.
Gold edged up 0.2% to $2,752.50 per troy ounce, while silver increased by 0.5% to $32.76 per ounce.
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