NEW YORK (AP) – Technology and health care companies led a stock market rally Wednesday, as Wall Street embraced the upside of more gridlock in Washington.
The S&P 500 rose 2.2% for its best day in five months. The benchmark index had been up 3.5% before the market lost some of its momentum toward the end of the day. That pullback wiped out more than 450 points from the Dow Jones Industrial Average, though the blue-chip index still closed more than 360 points higher.
The Nasdaq was the standout, notching its biggest gain in more than six months as traders doubled down on technology stocks. Health insurers were big winners, too, as prospects for an overhaul of the industry dimmed.
The fate of the U.S. presidency remains undecided as neither President Donald Trump or Democratic challenger Joe Biden has secured the 270 Electoral College votes needed to win. But after a tumultuous overnight session in global markets where Trump prematurely declared victory, Wall Street acted as if the occupant of the White House might be secondary.
Analysts said the gains came as markets focused on the benefits of the country’s political control remaining split between Democrats and Republicans. With Republicans edging closer to retaining control of the Senate, prospects dimmed for the tax increases and tighter regulations on businesses that investors expected if Democrats scored an electoral sweep, although a big stimulus effort for the economy that some on Wall Street say is needed now seems unlikely as well.