US benchmark equity indexes closed higher Tuesday as traders anticipated the results of the presidential election. The Nasdaq Composite jumped 1.4% to 18,439.2, while the S&P 500 rose 1.2% to 5,782.8. The Dow Jones Industrial Average advanced 1% to 42,221.9. All sectors experienced gains, led by consumer discretionary and industrials.
Americans are voting to choose the country's next president, with Democratic Party nominee and US Vice President Kamala Harris competing against Republican Party nominee and former President Donald Trump. Wall Street is observing key swing states, and the market is expected to experience fluctuations through uncertainty until a clear result is known.
It may take several days before the final outcome of the vote is revealed, analysts noted. 'The US presidential election will likely be decided by a few thousand voters across a handful of swing states,' stated Wells Fargo Investment Institute. The US two-year yield increased 2.1 basis points to 4.2%, while the 10-year rate lost 1.8 basis points, landing at 4.29%.
In economic updates, the US services sector saw sustained growth in October, as the Institute for Supply Management data indicated a faster growth rate sequentially, while S&P Global reported a slight deceleration. TD Economics commented, 'With measures of new orders and business activity still at healthy levels, the backbone of consumer spending is expected to remain a sturdy contributor to growth in the fourth quarter and into next year.' On Friday, data from ISM and S&P Global indicated that the US manufacturing sector continued in contraction territory last month amid output challenges.
The US trade deficit surged in September as goods imports increased while exports of both goods and services declined, based on government data released Tuesday. 'The election outcome could introduce upside risk to imports if importers preemptively adjust for potential tariff hikes in the event of a Trump presidency,' commented Oxford Economics.
West Texas Intermediate crude oil rose by 0.9% to $72.11 a barrel on Tuesday. In company news, shares of Palantir Technologies surged nearly 24%, making it the top performer on the S&P 500. Late Monday, the software company released stronger-than-expected third-quarter results and elevated its full-year outlook amid rising demand for artificial intelligence.
GlobalFoundries claimed the top gainer spot on the Nasdaq Tuesday, soaring 15% after presenting a third-quarter earnings beat. Conversely, Celanese shares plummeted 26%, positioning it as the worst performer on the S&P 500 following a disappointing third-quarter report on Monday. NXP Semiconductors shares dropped 5.2% on Tuesday, making it among the second steepest decliners on both the S&P 500 and the Nasdaq.
Late Monday, the company reported third-quarter results that fell short year-over-year, with a fourth-quarter outlook that missed analyst estimates. Gold increased 0.2% to $2,752.50 per troy ounce, while silver rose 0.5% to $32.76 per ounce..