Sunday, December 22, 2024

Stock market today: Wall Street rallies on Election Day as economy remains solid

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Asian shares were mostly higher on Wednesday after stocks on Wall Street rallied as Americans cast votes in a pivotal national election.

The results of Tuesday’s presidential election may not be known for days or weeks as officials count all the votes, and that uncertainty could upset markets worldwide.

The future for the S&P 500 gained 0.7% and that for the Dow Jones Industrial Average was up 0.6%.

Investors are also awaiting the outcome of a Federal Reserve decision on interest rates this week. The widespread expectation is for the U.S. central bank to cut its main interest rate for a second straight time.

Japan’s Nikkei 225 index gained 0.7% to 38,725.95 and the Kospi in Seoul edged 0.2% higher to 2,582.88.

Australia’s S&P/ASX 200 rose 0.7% to 8,190.00.

Hong Kong’s Hang Seng index lost 1.1% to 20,772.03, while the Shanghai Composite index edged 0.1% higher, to 3,388.94.

Chinese markets have been among the most active in the region this week as leaders hold a meeting of the Standing Committee of the National People’s Congress, the country’s legislature.

The gathering is expected to deliver more moves to help spur faster economic growth and resolve mounting levels of local government debt. On Tuesday, upbeat comments by Premier Li Qiang about the potential for both fiscal and monetary policies helped lift share benchmarks in Hong Kong and Shanghai by more than 2%. Li also expressed confidence that China will attain its growth target of about 5% this year.

On Tuesday, U.S. stocks advanced as voters headed to the polls and fresh data showed the economy remains healthy.

The S&P 500 rose 1.2% to 5,782.76 and the Dow industrials climbed 1% to 42,221.88. The Nasdaq composite gained 1.4% to 18,439.17.

A report showing growth accelerated last month for retailers, transportation companies and other businesses in the U.S. services industries. That was despite economists’ expectations for a slowdown, and the

The Institute for Supply Management reported growth for retailers, transport companies and other U.S. services businesses accelerated last month to its fastest pace in more than two years. That added to hope the U.S. economy will remain solid and avoid a recession following the worst inflation in generations.

Markets worldwide are fixated on what the election will mean for U.S. economic, monetary and trade policy, as well as geopolitics. A split in Congress between political parties would complicate policymaking, and a change to a White House headed by former President Donald Trump could bring major changes to trade and other policies.

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