Stocks rose for a third straight day as investors awaited midterm election results, with the Dow up 400 points.

Stock markets rose on Tuesday as investors awaited U.S. results Mid-term electionsThis could affect future levels of government spending and regulation.

The Dow Jones Industrial Average rose 408 points, or 1.3%, for its third straight day on the trail. The S&P 500 rose 1%. The Nasdaq composite was up 1.2%.

The moves come a day after all major indices hit a second straight positive session. The Dow Jones Industrial Average rose 423.78 points, or 1.31%. Meanwhile, the S&P 500 rose 0.96% and the Nasdaq Composite rose 0.85%.

Market participants expect Republicans to take back the House of Representatives and win the Senate when results begin to roll in Tuesday night. Investors like the idea of ​​gridlock with a divided Congress and president in Washington because it could limit government spending, new taxes and regulations.

“If we had gridlock, that would be the best thing that could happen to the market. Markets generally do well when that happens,” said Seth Cohen of the Wealth Alliance.

Overall, history shows the markets tend to get With the end of the year and 12 months after the midterm elections, investors will be relieved to have some clarity on future policy. Several races that could decide control of Congress will be a wild card if they are too close to be called, weighing on markets on Wednesday.

“Financial market reaction to a Republican victory should be muted because the House effect is already widely expected, and if Republicans control the House, the Senate effect makes less of a difference to policy outcomes,” said Goldman Sachs’ John Hatchius. he wrote in a note on Monday.

“A surprise Democratic win in the House and Senate could weigh on stocks as market participants expect additional corporate tax increases,” Hatchius added.

Shares Lift Down almost 20% Take-Two Interactive And Trip Advisor Each fell more than 18% after reporting disappointing quarterly results.

Meanwhile, Shares of Kohl’s rose more than 7% After the department store chain announced the departure of its CEO next month.

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