Stocks Rally for Second Day Before Election Result: Markets Wrap

Risk-on mood lifts financials, industrial and consumer sectors
Treasury yields climb; dollar drops most in almost a month

WATCH: Equities will suffer most in the event of a selloff, according to JPMorgan’s John Normand.Source: Bloomberg

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By Claire Ballentine and Kamaron Leach

November 2, 2020 at 9:50 PM UTC

Updated on

November 3, 2020 at 9:16 PM UTC

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U.S. stocks capped the biggest two-day rally since September, led by a surge in bank shares as Treasury yields spiked on speculation that Congress will deliver a spending bill once the election is decided. The dollar weakened and crude oil increased.

The S&P 500 climbed 1.8%, bringing the two-day increase to 3.2%. Financial firms rallied 2.2%, also the most since September. Democratic nominee Joe Biden leads President Donald Trump in the final polls, with some investors speculating his victory would bring a surge in federal spending. Meanwhile, Alibaba Group Holding Ltd.’s U.S.-traded shares tumbled 8.1% after China halted the initial public offering of Ant Group Co., in which Alibaba owns about a one-third stake.