On election day, US equity indexes experienced notable rises while government bond yields fluctuated, leading to a weakened dollar in the afternoon. The S&P 500 saw an increase of 1.1%, reaching 5,777.1, while the Dow Jones Industrial Average rose by 1% to 42,205.2. The Nasdaq Composite climbed 1.4%, arriving at 18,429.1.
This upward trend was reflected across all market sectors, particularly in technology, consumer discretionary, and industrials, which were among the top gainers of the day. US Treasury yields were predominantly on the rise, with the 10-year yield climbing by one basis point to 4.32%, and the two-year rate increasing by 2.9 basis points to 4.20%.
The RealClearPolitics national poll average reveals that Vice President Kamala Harris holds a slender lead over former president Donald Trump, as both candidates face off for the presidency. As the CBOE Volatility Index fell by 7.6% to 20.31, the US Dollar index experienced a 0.4% decrease to 103.52 as the election day transitions to ballot counting.
Wall Street is keenly observing the seven key swing states where Harris and Trump remain in a tight competition. Wells Fargo Investment Institute emphasized the significance of swing states, noting, "The US presidential election likely will be decided by a few thousand voters across a handful of swing states." In a key update on economic activity, the Institute for Supply Management's US services index surged to 56.0 in October from 54.9 in September, defying expectations of a drop to 53.8 as predicted in a Bloomberg survey.
The increase in employment has propelled the index to its highest level since July 2022, as analyzed by Oxford Economics. In a statement, Nancy Vanden Houten, Lead US Economist at Oxford Economics, remarked, "The level is consistent with our view that consumer spending, including on services, will continue at a brisk pace in Q4 and in 2025.
Election uncertainty continues to weigh on sentiment, and we think there is room for further improvement in the index once the outcome of the election is known." On another note, the S&P Global US services index was revised downwards to 55.0 in October from a previous flash reading of 55.3, differing from expectations of no revisions in the Bloomberg survey.
Despite this downward revision, the October index suggests continued sector expansion, aligning with most regional services data released. In corporate news, Palantir Technologies reported Q3 adjusted earnings and revenue exceeding market expectations, with shares surging 23% intraday, making it the leading gainer on the S&P 500.
Conversely, Celanese shares plummeted by 25% intraday after reporting lower Q3 adjusted earnings and sales. Additionally, West Texas Intermediate crude oil edged up by 0.5% to $71.82 a barrel. Meanwhile, gold prices increased by 0.2% to $2,752.10 an ounce, and silver saw a rise of 0.5% to $32.78 an ounce..