Wall Street Surges Amid Election Uncertainty

Wall Street indices surged on Tuesday despite ongoing uncertainties surrounding the tightly contested U.S. presidential election. Investors remain vigilant as election results could impact market volatility. While stocks showed strength, U.S. service sector activity reached a two-year high, reflecting economic robustness. The Federal Reserve’s interest rate decision looms.

Wall Street indices witnessed a significant rally on Tuesday, even as investors prepared for potential volatility linked to the U.S. presidential election. The fiercely contested race suggested a close call between Republican Donald Trump and Democrat Kamala Harris, leading to increased market interest in betting odds.

Despite noticeable volatile trading in bonds and currency markets, equity markets remained relatively stable, buoyed by positive corporate earnings and economic data. The VIX index, a gauge of Wall Street's volatility, dipped to 20.24, indicating calmer times compared to past electoral events.

In addition to gains in Conservative Discretionary and Information Technology sectors, U.S. services surged to a two-year high, according to the Institute for Supply Management. Meanwhile, a potential split government from Congressional elections may limit substantial presidential policy changes.

(With inputs from agencies.)