The Dow Jones Industrials popped 427.28 points, or 1%, to 42,221.88.
The much broader index surged 70.07 points, or 1.2%, to 5,782.76.
The S&P 500 is already up more than 19% year to date, an unusually strong run up ahead of an election, and is within 3% of its record
high.
The NASDAQ gathered 259.19 points, or 1.4%, to 18,439.17.
The race between former President Donald Trump and Vice President Kamala Harris is expected to be tight. Close attention also remains on which party dominates Congress, given that a sweep by Republicans or Democrats could contribute to drastic spending changes or a big revamp of tax policy
The results could have a significant effect on where stocks end the year, but investors may want to brace for some near-term choppiness. Data suggests the major averages gain between Election Day and the end of the year, but typically fall in the session and week after.
Uncertainty over the results could lead to even more shakiness in the market.
No clear election bets were emerging yet in stocks on Tuesday morning. Banks, which would stand to benefit from deregulation under GOP control, were higher but dramatically outperforming the broader market.
Shares of Nvidia rose nearly 3%, but the chipmaker and bull market stalwart would appear to be insulated regardless of the election’s outcome. Tesla rose 3.5%, though the electric car stock could be seen as benefiting from a Democratic victory or a Republican one, given CEO Elon Musk’s close ties to Trump.
Prices for the 10-year Treasury resumed their climb, weighing yields to 4.29% from Monday’s 4.32%. Treasury prices and yields move in opposite directions.
Oil prices took on 65 cents to $72.12 U.S. a barrel.
Prices for gold recovered $6.10 an ounce to $2.752.30 U.S.