Left Menu
Development News Edition

REFILE-US STOCKS-Wall St rallies on U.S. elections led by tech, health stocks

U.S. stocks surged on Wednesday with broad gains led by the technology and healthcare sectors as investors, relieved to put midterm elections behind them, made bets that a divided Congress would be good for equities.

Democrats won control of the House of Representatives on Tuesday, while President Donald Trump's Republican party expanded its Senate majority, pointing to a political gridlock in Washington.

The S&P's biggest boosts came from the S&P technology sector , which rose 2.4 percent, and the healthcare index , which gained 2.8 percent as investors were more comfortable taking on risky bets. The consumer discretionary sector was also a strong gainer as Amazon.com soared.

“I don’t think any of Trump’s agenda that he’s already accomplished gets unwound. That was the main point of concern for investors,” said Robert Phipps, a director at Per Stirling Capital Management in Austin, Texas. “We’ve got a relief rally because the market got exactly what it expected.”

At 2:53PM ET, the Dow Jones Industrial Average rose 444.78 points, or 1.74 percent, to 26,079.79, the S&P 500 gained 47.9 points, or 1.74 percent, to 2,803.35 and the Nasdaq Composite added 162.37 points, or 2.2 percent, to 7,538.34.

While a divided Congress will make it harder for Trump's administration to push through new legislation such as additional tax cuts, investors were not expecting a reversal of tax cuts and deregulation measures that have already been enacted.

Some strategists said Democratic control of the House means President Donald Trump would have a harder time gaining support for efforts to impose more regulations on Amazon.com, which rose 6 percent providing the S&P 500's biggest boost from a single stock.

But even as technology and healthcare stocks soared, investors questioned whether the sectors could now be more at risk of additional regulatory scrutiny.

Following a steep selloff in October, the S&P 500 was still roughly 5 percent below its record high reached in December, as investors still had their eyes on rising interest rates and a U.S.-China trade war.

The Federal Reserve began its two-day monetary policy meeting on Wednesday, but was not expected to raise rates until December.

Bank stocks were up but underperforming the broader market as Treasury yields slipped and investors bet that the divided Congress would hamstring any efforts for additional fiscal stimulus.

Health insurers Humana Inc, Anthem Inc and UnitedHealth Group Inc jumped to record highs as voters in three states approved expanding Medicaid programs for low-income people.

DaVita Inc jumped 10.9 percent after California rejected a proposal to limit the rates dialysis clinics can charge commercially insured patients.

Anadarko Petroleum Corp surged 5.8 percent and Noble Energy Inc jumped 5.2 percent after Colorado voters a rejected a tougher rule on oil and gas drilling, which spurred shares of companies operating in the state.

Among the laggards were luxury handbag maker Michael Kors Holding Ltd and beauty products maker Coty Inc , which tumbled 14.8 percent and 24.5 percent, respectively, after both missed quarterly revenue estimates.

Advancing issues outnumbered declining ones on the NYSE by a 3.07-to-1 ratio; on Nasdaq, a 1.90-to-1 ratio favored advancers.

The S&P 500 posted 34 new 52-week highs and 3 new lows; the Nasdaq Composite recorded 61 new highs and 61 new lows.

(Reporting by Sruthi Shankar in Bengaluru, additional reporting by Medha Singh; Editing by Arun Koyyur and Cynthia Osterman)

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

Download The Devdiscourse News App for Latest News.



Top 10 Fake News, Myths and Realities on 2019 Novel Coronavirus COVID 19

With nearly 1500 deaths by January 14 and around 65,000 infections in China, the Novel Coronavirus 2019 has become one of the worst health epidemics of the 21st Century. However, 8,573 people have been cured but the rumor mongers are a...

Handling fake news Infodemic in time of Coronavirus epidemic

Social media has provided a platform where everybody can disseminate his her views without any supervision. Its excellent if the message is genuine but misinformation is equally disastrous. Health is such a topic where every Tom and Harry c...

Sentiment Analysis on Budget 2020: Long shot for solution to economic worries?

Industries and individuals alike had high expectations from the government to take tangible steps but the budget 2020 seems to have failed expectations....

How can technology help the future of mobility?

More than a billion people or one-third of the global rural population lacked access to all-season roads and transport services in 2016, subsequently hindering the socio-economic development....


Latest News

Team LeBron tops Team Giannis in All-Star Game

CHICAGO -- Anthony Davis made a walk-off free throw and Team LeBron defeated Team Giannis in the 69th NBA All-Star Game on Sunday. Davis, the Los Angeles Lakers big man and first pick in the All-Star draft, missed badly off the back iron be...

Team LeBron tops Team Giannis in emotional All-Star Game

Anthony Davis made a walk-off free throw and Team LeBron defeated Team Giannis in the 69th NBA All-Star Game on Sunday. Davis, the Los Angeles Lakers big man and first pick in the All-Star draft, missed badly off the back iron before sinkin...

People News Roundup: London Fashion Week; Weinstein trial and more

Following is a summary of current people news briefs.Victoria Beckhams black dresses, chunky platform boots stage gentle rebellion at London Fashion WeekVictoria Beckham chose black dresses paired with distinctive belts and chunky thigh-hig...

Shell confirms coronavirus case at its Singapore refining site

A contractor working at Shells Pulau Bukom manufacturing site in Singapore has contracted the new coronavirus, the company said on Friday, as the city-state reported its biggest jump in new cases so far.The Bukom manufacturing site in Singa...

Give Feedback