Stocks Rise as Traders Make Bets on Election Expectations – US Market Wrap

Stocks rose at the start of the busiest week for corporate earnings, with traders also gearing up for the US election and key economic data that will set the stage for the next Federal Reserve decision.

All major groups in the S&P 500 gained, with the exception of energy shares that joined a plunge in oil. Crypto companies surged, with Bitcoin up about 3%.

A victory for Trump would be more beneficial for stocks and Bitcoin relative to his Democratic opponent, while a Kamala Harris presidency would bring slightly more relief to housing costs, according to a survey. Some 38% of respondents see equities accelerating a year from now under the Republican candidate, versus 13% under the Democrat.

A week before Fed gathers to reflect on the appropriate tempo of rates cuts, data is set to show underlying resilience in the US economy and a temporary hiccup in jobs growth. Investors are also awaiting results from firms accounting for nearly 42% of the S&P 500’s market capitalization, including several big techs like as Apple, Microsoft and Meta.

The S&P 500 rose 0.3%. The Nasdaq 100 was little changed. The Dow Jones Industrial Average gained 0.6%. The Russell 2000 of small caps climbed 1.6%. Bonds fell amid weak demand for a pair of US note sales. The Treasury trimmed its estimate for federal borrowing for the current quarter, while continuing to expect a $700 billion cash balance at the end of the year. Oil tumbled as Israel limited Iran strikes to military targets.