S&P 500 Approaches $5,800 as Stock Markets Close with Decent Gains

As U.S. voters head to the polls, the major U.S. indices such as the S&P 500 made some decent gains and closed near the daily highs, reflecting broad market gains. Treasury yields showed a mixed performance, with longer-term yields edging lower, while European markets remained steady to slightly positive, indicating cautious global sentiment influenced by recent economic data and bond activity. In currency markets, the USD weakened against other major currencies amid election uncertainties.

Generally, a Trump win is perceived as more favorable for markets and the dollar. Meanwhile, the DAX index in Europe had a challenging week but saw a recovery on Friday and today. It’s uncertain if this improvement is connected to Germany’s softer economic outlook or concerns over potential tariffs. Despite the European Central Bank’s planned rate cut in December, there has been no strong movement to price in a 50 basis point reduction.

Final data for major U.S. indices show strong gains:

• Dow Jones Industrial Average: +427.28 points (+1.02%) at 42,221.88
• S&P 500: +70.07 points (+1.23%) at 5,782.76
• Nasdaq: +259.19 points (+1.43%) at 18,439.17
• Russell 2000 (small cap): +41.81 points (+1.88%) at 2,260.84

U.S. Debt Market Overview:

• 2-year yield: 4.191%, up by 1.5 basis points
• 5-year yield: 4.159%, down by 0.7 basis points
• 10-year yield: 4.280%, down by 2.8 basis points
• 30-year yield: 4.441%, down by 5.3 basis points

$42 billion 10-year note auction results:

• Yield sold at 4.347%, just under the 4.350% expected
• Previous rate was 4.066%
• Bid-to-cover ratio: 2.58 (up from 2.48 previously)

Closing Changes for European Indices:

• Stoxx 600: Flat
• German DAX: +0.5%
• France CAC: +0.5%
• UK FTSE 100: -0.1%
• Spain IBEX: +0.2%
• Italy’s FTSE MIB: -0.2%

S&P 500 Live Chart