After ending the previous session mostly higher, stocks are seeing further upside during trading on Tuesday. The major averages have all shown strong moves to the upside in morning trading.
Currently, the major averages are hovering near their best levels of the day. The Dow is up 637.79 points or 2.4 percent at 27,562.84, the Nasdaq is up 237.24 points or 2.2 percent at 11,194.85 and the S&P 500 is up 73.90 points or 2.2 percent at 3,384.14.
The rally on Wall Street comes as traders seem to be hoping for a definitive outcome from today’s presidential election.
Democratic candidate Joe Biden holds a clear lead in national polls and is also leading in several key swing states in the race to defeat President Donald Trump.
Traders seem optimistic that the results of the election will be known at the end of the night without the need for lawsuits and recounts.
Trump has repeatedly raised questions about the legitimacy of mail-in ballots and has not committed to a peaceful transition of power.
On the U.S. economic front, the Commerce Department released a report showing new orders for U.S. manufactured goods showed a significant increase in the month of September.
The Commerce Department said factory orders jumped by 1.1 percent in September after rising by a revised 0.6 percent in August.
Economists had expected factory orders to surge up by 1.0 percent compared to the 0.7 percent increase originally reported for the previous month.
Networking stocks have shown a substantial move to the upside on the day, driving the NYSE Arca Networking Index up by 4.4 percent.
Shares of Arista Networks (ANET) are moving sharply higher after the networking company reported third quarter results that exceeded analyst estimates on both the top and bottom lines.
Considerable strength is also visible among banking stocks, as reflected by the 3.3 percent jump by the KBW Bank Index.
Computer hardware, transportation and retail stocks are also seeing significant strength, moving higher along with most of the other major sectors.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Tuesday, although the Japanese markets were closed. China’s Shanghai Composite Index jumped by 1.4 percent, while Hong Kong’s Hang Seng Index surged up by 2 percent.
The major European markets have also shown strong moves to the upside on the day. While the U.K.’s FTSE 100 Index has spiked by 2.2 percent, the French CAC 40 Index and the German DAX Index are both up by 2.4 percent.
In the bond market, treasuries have come under pressure after ending the previous session modestly higher. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 4.5 basis points at 0.894 percent.
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