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Wall Street rallies on U.S. elections lead by tech, health stocks

Reuters  |  NEW YORK 

By Sinead Carew

NEW YORK (Reuters) - U.S. stocks surged on Wednesday with broad gains led by the technology and as investors, relieved to put midterm elections behind them, made bets that a divided would be good for equities.

Democrats won control of the on Tuesday, while Donald Trump's expanded its majority, pointing to a political gridlock in

The S&P's biggest boosts came from the technology sector <.SPLRCT>, which rose 2.4 percent, and the healthcare index <.SPXHC>, which gained 2.8 percent as investors were more comfortable taking on risky bets. The consumer discretionary sector <.SPLRCD> was also a strong gainer as soared.

"I don't think any of Trump's agenda that he's already accomplished gets unwound. That was the main point of concern for investors," said Robert Phipps, a at Per in Austin, "We've got a relief rally because the market got exactly what it expected."

At 2:53PM ET, the <.DJI> rose 444.78 points, or 1.74 percent, to 26,079.79, the 500 <.SPX> gained 47.9 points, or 1.74 percent, to 2,803.35 and the <.IXIC> added 162.37 points, or 2.2 percent, to 7,538.34.

While a divided will make it harder for to push through new legislation such as additional tax cuts, investors were not expecting a reversal of tax cuts and deregulation measures that have already been enacted.

Some strategists said Democratic control of the House means would have a harder time gaining support for efforts to impose more regulations on , which rose 6 percent providing the 500's biggest boost from a single stock.

But even as technology and soared, investors questioned whether the sectors could now be more at risk of additional regulatory scrutiny.

Following a steep selloff in October, the was still roughly 5 percent below its record high reached in December, as investors still had their eyes on rising interest rates and a U.S.-trade war.

The Federal Reserve began its two-day monetary policy meeting on Wednesday, but was not expected to raise rates until December.

were up but underperforming the broader market as Treasury yields slipped and investors bet that the divided would hamstring any efforts for additional fiscal stimulus. [US/]

Health insurers , and jumped to record highs as voters in three states approved expanding Medicaid programs for low-income people.

jumped 10.9 percent after rejected a proposal to limit the rates clinics can charge commercially insured patients.

surged 5.8 percent and jumped 5.2 percent after voters a rejected a tougher rule on oil and gas drilling, which spurred shares of companies operating in the state.

Among the laggards were and , which tumbled 14.8 percent and 24.5 percent, respectively, after both missed quarterly revenue estimates.

Advancing issues outnumbered declining ones on the NYSE by a 3.07-to-1 ratio; on Nasdaq, a 1.90-to-1 ratio favoured advancers.

The posted 34 new 52-week highs and 3 new lows; the recorded 61 new highs and 61 new lows.

(Reporting by in Bengaluru, additional reporting by Medha Singh; Editing by and Cynthia Osterman)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, November 08 2018. 02:02 IST