NEW YORK, New York - U.S. stocks were stronger on Tuesday, drifting back mid-afternoon but then rallying again approaching the close.
Investors were caught up in voting on the midterm elections while others were calculating the potential impact of the outcomes.
Pre-election polls indicate the Republican party could lose control of the House of Representatives.
“The market backed off a little bit. It may be some concern as to the extent in which the Democrats take the House: how many seats versus what the expectation is,” Ken Polcari, director of the NYSE floor division at O’Neil Securities in New Yorktold the Reuters Thomson news agency. “It’s a little bit of the market trying to hedge itself. Surprises, as we know, can always happen.”
At the close of trading Tuesday the Dow Jones industrials were ahead 173.31 points or 0.68% at 25,635.01.
The Standard and Poor’s 500 gained 17.14 points or 0.63% to 2,755.45.
The tech-laden Nasdaq Composite climbed 47.11 points or 0.64% to 7,375.96.
“The market’s wanting the election to be done so investors can assess the implications. We’re still within the rebound after the October decline. I don’t know if we’re out of the woods yet,” Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago told Reuters Thomson.
The U.S. dollar remained range-bound Tuesday, and little had changed moving into the Asian session on Wednesday. The euro was being quoted at 1.1415 in early morning trading in Sydney on Wednesday.
The British pound was slightly firmer at 1.3093.
The Japanese yen wilted to 113.43, while the Swiss franc was a tad firmer at 1.00298.
The Canadian dollar gained a few basis points to 1.3130. The Australian dollar continued strengthening, last quoted at 0.7222. The New Zealand too was in demand, at 0.6671.
In overseas equity markets, it was a mixed bag. In London, the FTSE 100 fell 63.16 points or 0.89% to 7,040.68.
The German Dax dipped 10.62 points or 0.09% to 11,484.34.
The Paris-based CAC 40 was down 26.20 points or 0.51% at 5,075.19.
Stocks in Asia were mixed on Tuesday with strong gains in Japan, Hong Kong and Australia.
Chinese stocks were softer however at the close. The focus of attention was the U.S. midterm elections which could see U.S. President Donald Trump's Republican party lose control of the House of Representatives.
The Australian All Ordinaries at the close of trading was ahead 53.90 points or 0.91% at 5,958.70.
At the close of trading in Tokyo, the Nikkei 225 was ahead 248.76 points or 1.14% at 22,147.75.
In Hong Kong, the Hang Seng reversed earlier losses to finish strongly. At the end of the day it was up 186.57 points or 0.72% at 26,120.96.
The Shanghai Composite was down 6.0742 points or 0.23% at 2,654.35.