March 27, 2023

Brighton Journal

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Stocks rise for third day before midterm results, Dow closes 300 points higher

Stocks rise for third day before midterm results, Dow closes 300 points higher

Stocks rose on Tuesday as investors await US results midterm electionswhich could affect future levels of government spending and regulation.

The Dow Jones Industrial Average rose 333.83 points, or 1.02%, to 33,160.83 points. The S&P 500 rose 0.56% to 3,828.11. The Nasdaq Composite advanced 0.49% to 10,616.20. The three indices rose for the third consecutive day.

Market participants expect Republicans to retake the House and possibly win the Senate as well when results start to come in on Tuesday night. Investors tend to like the concept of stalemate in Washington with a divided Congress and president because it will limit government spending and new taxes and regulations.

“If we have a stalemate, that’s probably the best thing that can happen to the market,” said Seth Cohan of The Wealth Alliance. “And usually the markets do well when that happens.”

In general, history shows the markets tend to earn End of the year and up to 12 months after the midterm elections as investors are comfortable getting some clarity on future policy. The wild card may be one if the multiple races that could determine control of Congress are too close to speculate, an outcome that could affect markets on Wednesday.

“The financial market reaction to the Republican victory should be muted, as the House outcome is already widely expected, and the Senate outcome makes less of a difference to policy outcomes if Republicans control the House,” Jan Hatzius of Goldman Sachs. Written in a note on Monday.

“The Democrats’ surprise win in the House and Senate is likely to weigh on stocks, as market participants may expect additional increases in corporate tax,” Hatzius added.

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Stocks retreated from their highs on Tuesday afternoon, with the Nasdaq down 0.9% sometime amid a Wider sale of cryptocurrency. Cryptocurrency prices plummeted on Tuesday after the world’s two largest crypto exchanges, Binance and FTX, reached a merger agreement to fix the latest “liquidity crunch.” Bitcoin hit its lowest level at 17300.80, or its lowest since November 2020.

“Cryptocurrencies are a good lead for investor sentiment towards risk more broadly,” said Zachary Hill of Horizon Investments.

SolarEdge Technologies was the top performer in the broader market index, up 19% after posting record revenue in its fourth quarter. in another place, Kohl’s stock jumped 7% After the supermarket chain announced the departure of its CEO next month.

Meanwhile, shares Lift It is down almost 23% on the back of disappointing quarterly results. Take-Two Interactive. interactive And the Tripadvisor They fell by about 13.7% and 17.3%, respectively, after the earnings were announced.