Stock markets shoot higher ahead of U.S. voting day
S&P 500 shakes off 9-day losing streak, TSX adds 143 points
World stock markets surged into the green on Monday after the FBI announced newly discovered emails related to Hillary Clinton, Democratic candidate for U.S. president, didn't warrant any additional investigation.
The Dow Jones industrial average rose by 371.32 points as the market digested the news and interpreted it as a positive for Clinton.
Investors have been anxious in recent weeks over signs that the presidential race was tightening. Stock markets hate instability, and a Clinton presidency is being interpreted as a continuation of the status quo.
"Uncertainty over the U.S. election outcome has lifted somewhat following the weekend news that the FBI had absolved Clinton from any further wrongdoing in the email saga, possibly taking the wind out of the Trump campaign's sails at the last minute," Scotiabank said in a note to clients.
A broader market index, the S&P 500, ended Friday on its longest losing streak since 1980 — nine days in a row — on fears that Republican candidate Donald Trump may ascend to the White House.
But the mood on Monday was more confident as the market seemed to be assuming that the known entity would win out in the end. The S&P climbed 46.34 points, to 2,131.52
"This is not a rational market. This is a reaction to less uncertainty," said Phil Blancato, CEO of Ladenburg Thalmann Asset Management. "In those kinds of markets, people are jumping into stocks that they think are cheap. And what are the cheapest right now? Financials and health care."
Toronto's stock market, which has a lot of financial names, was also in a buoyant mood, with the S&P/TSX composite index rising 143.20 points to just over 14,652.45.
Gold, which tends to rise during times of uncertainty, lost $25.10 US an ounce to hit $1,279.40 US an ounce.
The December contract for light sweet crude dipped by 82 cents, closing at $44.89 US a barrel.
The Canadian dollar rose by 0.17 of a cent to finish at 74.78 cents US.
With files from The Associated Press