Stocks rallied in the final minutes of trading on Tuesday, with all three major averages gaining at least 1% for the session. The S&P 500 saw a broad rally, with more than four out of five stocks in the index trading higher.
Investors are closely watching the U.S. presidential election, with some experts predicting market volatility in the near term. Fairlead Strategies’ Katie Stockton said the market could see “corrective price action” into the end of the year, which could benefit defensive consumer staples stocks. Meanwhile, Citi’s Scott Chronert advised investors to sell a potential rally if former President Donald Trump wins, citing concerns over tariffs, or buy a dip if Vice President Kamala Harris is victorious.
Cathie Wood’s ARK Innovation ETF has plunged nearly 68% since Biden’s inauguration in January 2021, underperforming the broader market. However, some pandemic-era favorites, such as the Invesco Solar ETF and the WisdomTree Cloud Computing Fund, have also seen significant declines. Investors should keep a close eye on the U.S. dollar, as it could provide a transparent signal of market sentiment, according to Jefferies’ David Zervos.
