US stocks close higher as investors turn their attention to midterm election results
Brendan McDermid/Reuters
- US stocks rose on Tuesday as investors turned their attention to midterm election results.
- If Republicans gain a majority in Congress, it could create political gridlock, sparking a new rally in stocks, analysts say.
- Cryptocurrencies fell on news Binance plans to take over Sam Bankman-Fried's crypto exchange FTX.
US stocks rose on Tuesday as investors turn their attention to midterm election results, while cryptocurrencies sold off on renewed liquidity fears.
Wall Street has been eyeing possible political gridlock if the GOP takes over Congress, which could spark a new rally amid this year's bear market, analysts say. Carson Group's Ryan Detrick said a Republican majority could cause the stock market to enter its "best-performing environment," adding that it was possible stocks already bottomed out in October.
Cryptocurrencies fell on news that Binance is taking over Sam Bankman Fried's crypto exchange FTX, raising liquidity concerns in the sector. FTX Token plunged 84% and Binance's BNB fell 9%. The total value of the global crypto sector dropped 12%, according to data from CoinMarketCap, with Bitcoin tumbling 13%.
Here's where US indexes stood at the 4:00 p.m. opening bell on Tuesday:
- S&P 500: 3,828.11, up 0.56%
- Dow Jones Industrial Average: 33,160.83, up 1.02% (333.83 points)
- Nasdaq Composite: 10,616.20, up 0.49%
Here's what else is happening today:
- The Fed and other central banks could deliver a "Santa Pause" rally for global stocks this year as they dial back aggressive rate hikes, according to Charles Schwab.
- Wharton Professor Jeremy Siegel sees the Dow soaring 2,000 points once the Fed pivots to cutting rates.
- Oil prices could hit $125 a barrel next year if China ends its COVID-19 lockdown policy, Goldman Sachs said.
- Mortgage rates are surging, but higher credit quality means there likely won't be a default crisis like 2008, Goldman said.
In commodities, bonds, and crypto:
- West Texas Intermediate crude lost 2.83% to $89.19 per barrel. Brent crude, the international benchmark, gained 0.29% to $95.64.
- Gold rose 2.18% to $1,712 per ounce.
- The 10-year Treasury yield fell 8 basis points to 4.12%.
- Bitcoin fell 13% to $18,148.67.
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