Stock Market Soars as U.S. Economy Displays Strength amid Tight Election

U.S. stocks surged on Tuesday in a broad rally, buoyed by solid economic indicators, even as investors faced volatility due to a closely contested presidential election. The Institute for Supply Management's index showed growth in the services sector, while election outcomes influenced market dynamics and investor sentiment.

In a significant stock market surge on Tuesday, U.S. equity markets closed sharply higher, driven by optimistic economic data even as investors grappled with election-related uncertainty.

The Institute for Supply Management reported that its non-manufacturing purchasing managers index rose to 56.0, a signal of services sector growth, fueling market confidence. Meanwhile, investors braced for potential volatility amid the tight presidential race between Donald Trump and Kamala Harris, with the outcome likely to impact market trajectories further.

The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average posted substantial gains as investors anticipated a solid economic outlook, bolstered by corporate earnings and labor market resilience. However, volatility remained pronounced in government bond and forex markets as the election remained in focus.

(With inputs from agencies.)