Dow Gains 173 Points Because the Market Only Cares That Midterms Are Almost Over

Michael Haddad

The Big Day. Market closed higher on Tuesday, amid high turnout in the U.S. midterm elections—and now we wait for the results. Apple eked out a slim gain after Monday’s sharp drop, while oil price fell. In today’s After the Bell, we…

…examine how a midterm gridlock might affect the stock market; …highlight Mylan’s surge to the top of the S&P 500; …and explain why Nektar Therapeutics tumbled to the bottom of the index. The S&P 500 Outperforms After the Midterms…but Is It Because of the Midterms?

Americans across the country are heading to the polls on Tuesday to cast the votes that will determine the balance of power in Washington, and perhaps future policies. But that didn’t stop the stock market from ticking higher even as it awaits the outcome.

The Dow Jones Industrial Average added 173.31 points, or 0.7%, to 25635.01, while the S&P 500 rose 0.6% to 2753.52 and the Nasdaq Composite increased 0.6% to 7375.96.

Could it be that the results of the midterms just don’t have a major bearing on the market? Many analysts contend that’s the case.

A decade after the financial crisis, billionaire investor Warren Buffett explains what was behind the 2008 mayhem, what we can do to limit the damage and opportunities missed last time.

The latest polls suggest that Democrats are likely to take control of the House of Representatives, while Republicans are favored to maintain their majority in the Senate. This will result in a divided Congress and possibly legislative gridlock going forward, which means little possibility of big changes in the fiscal policy and hence moderate impact on the market.

Some anticipate Republicans maintaining control of Congress, while others say the Democrats could flip both

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