US stocks rally as investors brace for presidential election outcome

US stocks rallied Tuesday as Wall Street awaited the results of a closely contested presidential race.

US stocks rallied Tuesday as Wall Street awaited the results of a closely contested presidential race. The Dow closed 425 points, or 1% higher; the S&P 500 gained 1.2%; and the tech-heavy Nasdaq climbed 1.4%, all underscoring investor optimism as Americans cast their ballots. Market futures continued their upward ascent in early after-hours trading. Futures on the Dow jumped nearly 300 points while the S&P 500 jumped by a half percentage point as election results began to stream in on Tuesday night. “The market appears to be in an anticipatory relief rally now that the election is here,” said Louis Navellier of Navellier & Associates in a note to investors Tuesday. “While it’s still anyone’s call on where the chips will fall on the election, putting it behind in either direction is a relief.” Historically, stocks have often risen on Election Day. This marks the sixth-straight Election Day gain for the S&P 500 and Nasdaq. Yet, with the race between Vice President Kamala Harris and former President Donald Trump exceptionally tight, economists warn of potential volatility ahead, especially if results take days — or even weeks — to finalize. In 2020, it took several days to declare Joe Biden the winner, while the 2000 election between George W. Bush and Al Gore famously dragged on for more than a month.