Stocks soar ahead of US midterm elections, Dow closes above 400 points

Stocks rose on Monday as investors looked ahead to a busy week midterm congressional elections And major inflation data is on deck for the next few days, ignoring Apple’s supply warning.

The Dow Jones Industrial Average rose 423.78 points, or 1.31%, to 32,827.00 points. The S&P 500 rose 0.96% to 3,806.80. The Nasdaq Composite rose 0.85% to 10564.52 after trading between gains and losses earlier in the session. The three major averages achieved a second positive day in a row.

Apple shares rose about 0.4%, despite dropping more than 1% earlier in the session, after the tech company said iPhone production has been temporarily reduced Due to Covid-19 restrictions in China. Meanwhile, Palantir shares fell about 11.5% after the company reported disappointing quarterly results. Carvana down 15.6%.

Facebook Parent dead 6.5% profit after a The Wall Street Journal Report said that The company could start laying off workers as soon as Wednesday.

Major elections and upcoming economic reports

Tuesday’s midterm elections will determine which party will dominate Congress, and influence the direction of future spending. Democrats currently control the House of Representatives, and have a majority in the Senate.

Investors can accept a potential deadlock that could emerge from the midterm elections as a Democratic president, with a Republican or a divided Congress, historically means above-average gains, RBC’s Laurie Calvasina said in a note Monday.

“The market is hoping that some kind of Republican sweep of Congress will lead to the kind of stalemate in Washington, which they see as good, or at least no new spending, which will be good for interest rates and Treasury supply,” Brad said. Conger, Vice President of Information at Hirtle Callaghan & Co.

On the economic front, investors are expecting Thursday’s CPI report to provide more information on the extent to which the Federal Reserve needs to bring down inflation. A hot report for investors could indicate that a pivot from a prolonged period of interest rate hikes may not be imminent.

“[In] In order for the stock and bond markets to match inflation performance after the peak indicated in the table, inflation must continue to decline – and at a faster pace than we have seen so far. Until the Fed signals the “pivot” approaching, things may still be difficult,” Byrd’s Ross Mayfield wrote in a recent note.

Elsewhere, several companies are expected to announce on Monday including Activision BlizzardAnd the Lift And the Take-Two Interactive. interactive. Corporate earnings season ends with the majority of companies in the S&P 500 reporting their results.