Wall St rallies on US elections led by tech, health stocks

The Amazon.com logo and stock price information is seen on screens at the Nasdaq Market Site in New York September 4, 2018. — Reuters pic

NEW YORK Nov 8 — Wall Street rose 2 per cent yesterday, led by the technology and healthcare sectors as investors breathed a sigh of relief following the US midterm elections and made bets that a divided Congress would be good news 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 the likelihood of political gridlock in Washington.

The S&P’s biggest boosts came from the S&P technology sector and the healthcare stocks, with both indexes gaining 2.9 per cent. The consumer discretionary sector climbed 3.1 per cent, spurred by a 6.9 per cent rise in Amazon.com shares. Amazon provided the single biggest boost to the S&P 500.

“Now we’re in an environment that people can understand again so they’ll be willing to put some money back on the table. There was a little fear out there,” said Peter Tuz, president at Chase Investment Counsel Corp in Charlottesville, Virginia.

The Dow Jones Industrial Average rose 545.29 points, or 2.13 per cent, to 26,180.3, the S&P 500 gained 58.44 points, or 2.12 per cent, to 2,813.89, and the Nasdaq Composite added 194.79 points, or 2.64 per cent, to 7,570.75.

The CBOE Volatility Index, the most widely followed gauge of expected near-term gyrations for the S&P 500, finished down 3.55 points at 16.36, its lowest close in about a month.

While a divided Congress will make it harder for President Donald Trump to push through new legislation such as additional tax cuts, investors were not expecting a reversal of tax cuts and deregulation already enacted under Trump.

“This outcome probably provides the most

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