Day Traders Diary
The major averages soared as investors hope for a clear winner from the U.S. presidential election and avoid a contested election. The Dow Jones Industrial Average closed up 552 points higher, or 2.1%. The S&P 500 climbed 1.8% while the Nasdaq Composite advanced 1.9%. It was the second-best Election Day performance for the S&P 500 on record.
Walgreens Boots Alliance and JPMorgan Chase both gained more than 4% to lead the blue-chip Dow higher. Industrial and financials were the best-performing sectors in the &SP 500, gaining more than 2% each.
Ten of the 11 S&P 500 sectors finished in positive territory with each rising more than 1.0%. Only the energy sector closed lower despite higher oil prices, $37.62, +0.83, +2.3%.
While there was no specific catalyst today, the gains might have been aided by an acknowledgement that the market was still oversold on a short-term basis. In addition, there was a sense of optimism that an election outcome could be projected tonight or by tomorrow morning (or perhaps some relief that it's almost over).
The positive price action also contributed to continued selling in longer-dated Treasuries, which steepened the curve in a trade that benefited the financial sector. The 2-yr yield was unchanged at 0.16%, while the 10-yr yield increased three basis points to 0.88% to close at its highest level since June 8. The U.S. Dollar Index fell 0.7% to 93.51.
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