Stocks rally for third day ahead of midterm election results, Dow ends 300 points higher

Stock markets rose on Tuesday as investors awaited U.S. results Mid-term electionsThis could affect future government spending and regulatory levels.

The Dow Jones industrial average rose 333.83 points, or 1.02%, to 33,160.83. The S&P 500 rose 0.56% to 3,828.11. The Nasdaq Composite advanced 0.49% to 10,616.20. All three indexes rose for the third day in a row.

Market participants expect Republicans to take back the House of Representatives and win the Senate when results begin to roll in Tuesday night. Investors like the idea of ​​gridlock with a divided Congress and president in Washington because it could limit government spending, new taxes and regulations.

“If we have a phase, that’s probably the best thing that could happen to the market. When that happens, markets generally do well,” said Seth Cohen of the Wealth Alliance.

Overall, history shows the markets tend to get At the end of the year and 12 months after the midterm elections, investors will be relieved to have some clarity on future policy. Several races that could decide control of Congress will be a wild card if they are too close to be called, weighing on markets on Wednesday.

“Financial market reaction to a Republican victory should be muted because the House effect is already widely expected, and if Republicans control the House, the Senate effect makes less of a difference to policy outcomes,” said Goldman Sachs’ John Hatchius. he wrote in a note on Monday.

“A surprise Democratic win in the House and Senate could weigh on stocks as market participants expect additional corporate tax increases,” Hatchius added.

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Stocks hit a high on Tuesday afternoon, with the Nasdaq at one point falling 0.9%. Broad sell-off in cryptocurrencies. Crypto prices fell on Tuesday after the world’s two biggest crypto exchanges, Binance and FTX, reached a merger agreement to fix the recent “cash crunch”. Bitcoin hit a low of 17,300.80, its lowest level since November 2020.

“Crypto is a good bellwether for investors’ risk perception more broadly,” said Horizon Investments’ Zachary Hill.

Solar Edge Technologies is leading the broader market index after posting record revenue in its latest quarter. Elsewhere, Cole’s shares rose 7% After the department store chain announced the departure of its CEO next month.

Meanwhile, stocks Lift Disappointing quarterly results down nearly 23%. Take-Two Interactive And Trip Advisor Earnings fell 13.7% and 17.3%, respectively, after the report.

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