New York: Wall Street stocks rose for a second straight session Monday as the dollar retreated and markets began to look past midterm US elections.
With polls showing Republicans likely to win at least one house of Congress, analysts welcomed the prospect of further Washington gridlock, a scenario that lessens policy uncertainty as a risk.
Even if President Joe Biden's party retrains narrow control of the legislature, the stock market has historically pushed higher after midterm votes, said LBBW's Karl Haeling, who notes that November through April — when the new lawmakers will take office — is a seasonally strong period for equities.
"I don't think it's specific to any expectations for a Republican victory," Haeling said of Monday's rally. "It is simply that once the midterm elections are completed, stock markets tend to do well in the year end."
The Dow Jones Industrial Average gained 1.3 per cent to finish at 32,827.00.
The broad-based S&P 500 advanced1.0 per cent to 3,806.80, while the tech-rich Nasdaq Composite Index rose 0.9 per cent to 10,564.52.
This week's calendar also includes consumer price data on Thursday, which will be a key test of whether the Federal Reserve's interest rate hikes have made a dent in inflation and whether the US central bank will feel the need to enact another supersized increase next month.
Among individual companies, Walgreens Boots Alliance jumped 4.1 per cent after announcing the $8.9 billion purchase of Summit Health-CityMD, an urgent care company.
Tyson Foods fell 0.1 per cent after the company's chief financial officer, John Tyson, was arrested after alleged public intoxication and trespassing, according to news reports. He is the grandson of the company's founder.