With voters heading to the polls, the race between Kamala Harris and Donald Trump is as close as any in modern history
Stocks rose on Tuesday as investors braced for the outcome of the presidential election. By the end of the day, the Dow Jones Industrial Average was up 427 points, or 1%. The S&P 500 rose about 1.2%, while the tech-heavy Nasdaq $NDAQ was up about 1.4%.
An index tracking the dollar hit its lowest point in more than a month on Monday morning and was hovering just above that point on Tuesday. Ten-year treasury bonds are slightly up.
The movements came with the end of the presidential election on the horizon — although it could take days for the outcome to be clear.
Markets, believing former President Donald Trump was heading toward a victory, started engaging earlier this year in the Trump Trade — or when investors traded in response to a possible second Trump administration. However, recent polls show that Trump and Vice President Kamala Harris are neck-and-neck.
Several polls published over the weekend showed Harris gaining ground on Trump, including in battleground states such as North Carolina and Georgia. And a new poll from famed Iowa pollster Ann Selzer published by the Des Moines Register showed her ahead of Trump by three points in Iowa, a Trump-friendly state.
According to 538's polling average, Harris wins 50 times out of 100, while Trump wins 49 times out of 100. Others, such as Decision Desk HQ and The Hill’s averages, show that Trump has a 54% chance of winning the election, compared to Harris’ 46%.
Trump Media and Technology Group (DJT) stock surged almost 15%. Shares of Trump Media, the company that owns former President Donald Trump’s social media site Truth Social, had closed up more than 12% on Monday. This week has marked a renewed bout of “pre-election euphoria” for Trump Media.
Shares of Phunware (PHUN), a mobile advertising company linked to Trump, were also up, despite its chief financial officer announcing he would be stepping down. The Austin, Texas-based company has been tied to Trump since 2020, when it built the app for Trump’s presidential campaign.
Shares of Palantir $PLTR Technologies (PLTR) climbed more than 20% after posting better-than-expected earnings. Artificial intelligence networking chip firm Astera Labs (ALAB) likewise delivered blowout earnings.
Super Micro Computer (SMCI), which faces the threat of delisting from the Nasdaq, is expected to report earnings after the closing bell.
— Rocio Fabbro contributed to this article.
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