[News] Stocks Surge, Led by Tech Sector Rally, as Investors Await Presidential Election Results

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Stocks closed sharply higher Tuesday, rebounding from the previous session's losses, as investors awaited the results of the tightly contested U.S. presidential election. 

The S&P 500 and Nasdaq Composite gained 1.2% and 1.4%, respectively, while the Dow Jones Industrial Average added 1%. The major indexes, coming off losses last week, had fallen on Monday as investors positioned ahead of the election and the Federal Reserve's decision on interest rates later this week.

Large-cap technology stocks led the rally on Tuesday. Shares of AI investor favorite Nvidia (NVDA) rose 2.8%, while Apple (AAPL) Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOGL), Meta Platforms (META), Broadcom (AVGO) and Tesla (TSLA) were all gaining ground. Nvidia once again overtook Apple at the top of the list of the world's most valuable companies in early trading.

Among other noteworthy movers, Palantir (PLTR) shares jumped 23%, leading S&P 500 gainers, to an all-time high after the analytics software provider released better-than-expected quarterly results and a rosy outlook, boosted by demand for its AI offerings. Shares of GlobalFoundries (GFS) led the Nasdaq, rising 15% after the chipmaker released its results.

Among Dow components, Intel (INTC) advanced 3.6%, recovering from a steep drop yesterday that followed news the struggling chipmaker would be replaced in the blue-chip index by Nvidia later this week. Boeing (BA) shares were down 2.6% even as the plane maker's machinists voted to approve a new labor contract, putting an end to a crippling seven-week strike.

The yield on 10-year Treasurys, which is sensitive to expectations about where interest rates are headed, was at 4.28%, down from a high of 4.37% this morning. The yield has been rising in recent weeks as investors have recalibrated their thinking about how aggressive the Fed will be in cutting interest rates. The central bank is widely expected to trim its benchmark lending rate by a quarter percentage point at its policy meeting on Thursday.

Crude oil futures were up about 1% after surging yesterday following news that the OPEC+ group of oil-producing nations had agreed to extend output cuts. Gold futures were little changed at around $2,750 an ounce, while bitcoin was trading at around $69,500, up from overnight lows around $68,000.

 

Markets News, November 5, 2024: Stocks Surge, Led by Tech Sector Rally, as Investors Await Presidential Election Results