U.S. equities rose for the second week as investors moved past the uncertainty of the midterm elections and assessed the latest batch of corporate earnings.
The Standard & Poor’s 500-stock index rose 2.1 percent in the five days through Friday, pushing its gain to more than 5 percent since the worst of last month’s rout. The tech-heavy Nasdaq 100 Index gained 1.1 percent. The Dow Jones industrial average increased 2.8 percent to 25,989.
Stocks rallied the most on Wednesday as riskier assets came into favor after Democrats won control of the House of Representatives and Republicans retained the Senate. The outcome reduces the chances that President Trump’s tax cuts will be reversed, but also makes less likely major fiscal initiatives that might have pushed up interest rates.
The rebound lost steam in the latter half of the week amid a fresh round of selling in technology shares sparked by weak earnings. Overall, the third-quarter earnings season has been marked by better-than-expected results. So far, 451 of S&P 500 companies have reported, with 82 percent beating analysts profit estimates.
The Treasury will sell $45 billion of three-month bills and $39 billion of six-month bills on Tuesday. They yielded 2.39 percent and 2.54 percent in when-issued trading. Also Tuesday are sales of $30 billion of eight-week bills and $50 billion of four-week bills.