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Wall Street Closes Sharply Higher on Stimulus Hopes

NEW YORK, Nov 3 Reuters U.S. stocks closed sharply higher on Tuesday as Americans voted in one of the countrys most rancorous presidential elections and investors bet it would be decided without a prolonged process, leading to a swift deal on more fiscal stimulus.

Democrat Joe Bidens lead over Republican President Donald Trump in national opinion polls has raised expectations for a decisive outcome and a postelection stimulus package that would make good on Bidens promises of infrastructure spending.

Some analysts said the markets strong gains also reflected a rebound from a selloff last week, the biggest weekly percentage decline for the SP 500 in over seven months.

It seems as though the polls have narrowed which makes it a little bit more difficult for Biden but the market reacting the way it is now tells me the market thinks we are going to get a resolution fairly quickly, said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.

If for some reason we dont have any kind of a clear picture, if there is an unwillingness to concede on the part of the loser and this ends up having to go to the courts, we are in for some choppy, volatile markets for awhile.

On Election Night 2016, U.S. stock index futures plunged as it became apparent Trump could pull an upset victory against Democrat Hillary Clinton. The benchmark SP 500 has since risen 55 as Trumps lower tax rates boosted corporate profits and share buybacks….

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