US benchmark equity indexes experienced positive momentum on Tuesday as traders anticipated the outcome of the presidential election. The Nasdaq Composite surged 1.4% to 18,439.2, while the S&P 500 increased by 1.2% to 5,782.8. The Dow Jones Industrial Average also advanced, gaining 1% to reach 42,221.9.
All sectors marked gains, with consumer discretionary and industrials leading the charge. Voting across the nation saw Americans selecting the next president, with Democratic Party nominee and current US Vice President Kamala Harris vying against Republican nominee and former President Donald Trump. Wall Street analysts are keeping a close eye on pivotal swing states, as market fluctuations are expected until a definitive result emerges.
The timeline for clarity on the voting outcome could extend over several days, analysts indicated. "The US presidential election likely will be decided by a few thousand voters across a handful of swing states," stated Wells Fargo Investment Institute. In bond markets, the US two-year yield rose 2.1 basis points to 4.2%, whereas the 10-year rate experienced a decline of 1.8 basis points, landing at 4.29%. In economic updates, the US services sector showcased continued expansion in October, with data from the Institute for Supply Management revealing a sequential uptick in growth rates.
Conversely, S&P Global indicated minor deceleration in certain areas. "With measures of new orders and business activity still at healthy levels, the backbone of consumer spending is likely to remain a sturdy contributor to growth in the fourth quarter and into next year," asserted TD Economics. On Friday, data from ISM and S&P Global highlighted that the US manufacturing sector remained in contraction last month due to output weaknesses. The trade deficit widened in September, driven by rising goods imports while both goods and services exports experienced declines, according to newly released government data. "The election's outcome could potentially increase import risks if importers anticipate possible tariff hikes in a Trump presidency," noted Oxford Economics. In energy markets, West Texas Intermediate crude oil climbed 0.9% to $72.11 a barrel. In company news, Palantir Technologies saw its shares soar nearly 24%, marking it as the best performer on the S&P 500.
The software firm reported stronger-than-expected third-quarter results, revising its annual outlook upward due to escalating demand for artificial intelligence solutions. On the Nasdaq, GlobalFoundries emerged as the top gainer on Tuesday, escalating by 15% following a significant third-quarter performance. Conversely, Celanese's shares plummeted 26%, making it the worst-performer on the S&P 500 after a disappointing third-quarter report released late Monday. NXP Semiconductors faced a decline of 5.2% on Tuesday, ranking among the steepest losers on both the S&P 500 and Nasdaq after reporting third-quarter results that fell short compared to the previous year, along with a weakened fourth-quarter outlook. Gold prices increased by 0.2%, trading at $2,752.50 per troy ounce, while silver gained 0.5% to reach $32.76 per ounce..