WALL Street stocks rose for a second straight session yesterday as the dollar retreated and markets began to look past midterm US elections.

With polls showing Republicans likely to win at least one house of Congress, analysts welcomed the prospect of further Washington gridlock, a scenario that lessens policy uncertainty as a risk.

Even if President Joe Biden’s party retrains narrow control of the legislature, the stock market has historically pushed higher after midterm votes, said LBBW’s Karl Haeling, who notes that November through April – when the new lawmakers will take office – is a seasonally strong period for equities.

“I don’t think it’s specific to any expectations for a Republican victory,” Haeling said of Monday’s rally. “It is simply that once the midterm elections are completed, stock markets tend to do well in the year end.”

The Dow Jones Industrial Average gained 1.3% to finish at 32,827.00.

The broad-based S&P 500 advanced1.0% to 3,806.80, while the tech-rich Nasdaq Composite Index rose 0.9% to 10,564.52.

This week’s calendar also includes consumer price data on Thursday, which will be a key test of whether the Federal Reserve’s interest rate hikes have made a dent in inflation and whether the US central bank will feel the need to enact another supersized increase next month.

Among individual companies, Walgreens Boots Alliance jumped 4.1% after announcing the US$8.9 (RM42) billion purchase of Summit Health-CityMD, an urgent care company.

Tyson Foods fell 0.1% after the company’s chief financial officer, John Tyson, was arrested after alleged public intoxication and trespassing, according to news reports. He is the grandson of the company’s founder. – AFP, November 8, 2022.