Technology Stocks Surge Amid U.S. Election Tension

Wall Street's key indexes rose as technology and chip stocks gained, while investors anticipated volatile trading amid a tightly contested U.S. presidential election. Market calm prevailed despite election uncertainty, as strong economic data and positive forecasts boosted stocks like Meta and Tesla.

Wall Street's main indexes experienced gains on Tuesday, driven by an uptick in technology and chip stocks, as investors braced for potential volatility from the tightly contested U.S. presidential election. The election, pitting Republican Donald Trump against Democrat Kamala Harris, could see its results delayed as opinion polls indicated a close race.

Despite the electoral uncertainty, markets remained stable as the volatility index, VIX, dropped to 20.72. This environment favored rate-sensitive megacap growth stocks, including Meta Platforms and Tesla, which posted gains of 1.8% and 4%, respectively. Chipmaker GlobalFoundries' optimistic forecasts propelled its shares by 9%, contributing to the sector's rally.

U.S. services sector activity unexpectedly rose in October. While markets anticipate the Federal Reserve may cut interest rates by 25 basis points, economic strength casts doubt on further easing. The upcoming Congressional elections could also impact policy direction, with analysts predicting a likely split government.

(With inputs from agencies.)