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  • Wall Street’s main indexes trade in the positive territory on Tuesday.
  • All major sectors of the S&P 500 trade in the positive territory.
  • First results of the US election are set to arrive after the closing bell.

Major equity indexes in the US opened decisively higher on the election day as investors look to adjust their positions while waiting for the first results to come in after the closing bell. As of writing, the S&P 500 Index was up 1.3% on the day at 3,352, the Dow Jones Industrial Average was gaining 1.63% at 27.372 and the Nasdaq Composite was rising 0.55% at 11,016.

Reflecting the upbeat market mood, the CBOE Volatility Index (VIX), Wall Street’s fear gauge, is down 3.3% on the day at 35.9.

All 11 major sectors of the S&P 500 trade in the positive territory with the Financials Index leading the rally by rising more than 2%. On the other hand, the defensive Real Estate is the underperformed in the early trade, rising 0.7% on the day.

Previewing the US stock markets’ reaction to the election outcome, “business and equity markets historically prefer the economic and regulatory policies of Republican administrations. On a strict policy basis that remains true of the Trump tenure,” said FXStreet senior analyst Joseph Trevisani. “The overwhelming tilt to Biden in financial sector campaign contributions is a function of two factors. The first is practical. Biden has led in the polls throughout the fall and Wall Street, true to its analytic basis, is just playing the odds.”

2020 US Elections: Equities in three scenarios

S&P 500 chart (daily)