U.S. equity soars on Monday after a nine-day slide as FBI said ‘no change from July’ on Democratic nominee Hillary Clinton’s investigation. The Dow Jones Industrial Average jumped more than 300 points to 18,233. The S&P rose 2.04 percent to 2,127.80 at 1:29 p.m. in New York, ending its longest losing streak since 1980. Financials and Technology lead the gain, rising 2.6 percent and 2.36 percent respectively. Nasdaq Composite Index increased 2.3 percent as the Technology sector outperformed others.
“This is mostly a political-relief rally. The market tends to favor a divided-control scenario [in government] and this raises those odds,” said Bruce McCain, chief investment strategist at Key Private Bank. “This is a week to settle out the election and then we’ll see where investors turn their attention to.”
The rally came after FBI cleared Clinton on her private email server investigation. Federal Bureau of Investigation Director James Comey said Sunday in a letter that the bureau had “not changed its conclusions,” that it wouldn’t recommend criminal charges against Clinton. The announcement came just two day before 2016 U.S. presidential election.
“We’ve been down nine straight days as concerns over a potential Trump victory put a lot of caution in the market,” said Michael James, managing director of equity trading at Wedbush Securities Inc. in Los Angeles. “Some of that is being relieved with the comments from the FBI about the Clinton e-mail investigations. All today guarantees is that there will be more volatility for the rest of the week following tomorrow’s election.”
Investors are figuring out how the presidential election will affect the global financial market. The major Wall Street analysts had the consensus view that the stock market will sell off if Donald Trump wins, while the market will edge up if Clinton wins.
“We believe that if Trump wins, markets are likely to fall further — one should not use the Brexit template where stocks bounced quickly,” Mislav Matejka and other JPMorgan analysts said in a Monday note.