Markets could be expected to swing about today in step with developments in the US election.
U.S. equities rose on Tuesday, led by utilities, as investors awaited the results of the U.S. presidential election.
The Dow Jones industrial average rose more than 100 points before holding about 61 points higher with 3M and Travelers contributing the most gains. The index also momentarily broke above its 50-day moving average and traded lower earlier in the session.
The S&P 500 gained 0.25 percent after briefly trading slightly lower. The index, which snapped its longest losing streak in almost 36 years on Monday, also broke above its 50-day moving average for the first time since Oct. 10.
"I think people are starting to feel better about [the election]," said Robert Pavlik, chief market strategist at Boston Private Wealth. "I think people were looking for a reason to turn positive."
The Nasdaq composite also erased earlier losses, rising 0.8 percent.
"The action today suggests the incumbent party has a strong chance of winning," said Bruce Bittles, chief investment strategist at Baird.
Peter Cardillo, chief market economist at First Standard Financial, said that a surge in the Mexican peso may be improving sentiment in the U.S. stock market. The peso hit its highest level since Sept. 8 against the dollar and traded near 18.44 in afternoon ET. The Mexican peso has been considered a proxy trade for the U.S. election. 1
Oil prices seesawed on Tuesday, as U.S. stock markets edged higher and voters headed to the polls to elect the next president of the United States.
A retreat in U.S. stock index futures earlier in the session and a pickup in the dollar put some pressure on oil futures.
In a swell of investor risk appetite, U.S. stocks racked up their biggest one-day gain since March on Monday, which fed into an easing in the dollar that underpinned more risk-linked assets such as oil, copper and European equities on Tuesday. 1
Gold prices ended the U.S. day session modestly lower on follow-through selling pressure from Monday’s strong down day. This week has seen a marked uptick in trader and investor risk appetite, and that’s bearish for safe-haven gold. There is a growing belief among market watchers that Hillary Clinton will win the U.S. presidential election. 2
