U.S. equities kicked off the week on a high note, trading sharply higher on Monday after the FBI again cleared Democratic nominee Hillary Clinton over her use of a private server.
“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 Dow Jones industrial average rose 300 points, with Goldman Sachs and UnitedHealth contributing the most gains to the tune of 26 points each. The S&P 500 advanced 2 percent, as financials gained 2.4 percent to lead all sectors higher. The Nasdaq composite outperformed, rising 2.32 percent.
“In terms of the market and its possible response on Wednesday, today’s reaction to the FBI news is obvious evidence that market participants have wrapped up the world in a nice and easy box,” said Peter Boockvar, chief market analyst at The Lindsey Group.